Crexendo: Sinks after launching stock offering

Crexendo

21/09/2020 12:57

** Shares of cloud-based services provider  CXDO.O  drop 17%
to $6.20 premarket
    ** Co launches registered public offering of 3.5 mln shares,
consisting of 1.75 mln shares to be sold by CXDO and the other
1.75 mln shares by certain stockholders  urn:newsml:reuters.com:*:nACSCjTS7a
    ** Offering price was not provided; offering size represents
~94% of co's free float
    ** CXDO intends to use net proceeds from this offering for
general corporate purposes, including product development 
    ** CEO Steven Mihaylo currently owns ~69% of co's
outstanding stock; upon completion of offering, Mihaylo will own
~53% stake, according to CXDO filing https://www.sec.gov/Archives/edgar/data/1075736/000165495420010264/cxdo_s1.htm
    ** Up to Friday's close, stock had risen ~77% YTD

 (Reporting by C Nivedita in Bengaluru)
 ((c.nivedita@thomsonreuters.com))