Star Equity Holdings drops to record low after discounted share offering

Star Equity Holdings

20/01/2022 11:59

** Shares of diversified holding co  STRR.O  fall 27.7% to
$1.2 premarket - a record low; stock top pct loser across U.S.
exchanges 
    ** Co prices its underwritten public offering of 9.5 mln
shares and warrants to purchase up to 9.5 mln shares at combined
price of $1.50/share and common warrant, discount of ~9.6% to
stock's last close  urn:newsml:reuters.com:*:nGNX3BBsYP
    ** Gross proceeds are expected to be ~$14.25 mln and
offering is expected to close by January 24
    ** Maxim Group LLC is acting as sole book-running manager
for the offering
    ** Common warrants will be immediately exercisable at price
of $1.50/shr and will expire five years from date of issuance
    ** Co has ~5.12 mln shares outstanding worth ~$8.50 mln, per
Refinitiv data
    ** About 430,900 shares of the Old Greenwich,
Connecticut-based company have traded so far, ~208.9% of their
30-DMA volume
    ** Both brokerages covering the stock rate it "buy"; their
median PT is $6.63 - Refinitiv data
    ** As of last close, stock down 34.9% YTD

 (Reporting by Devik Jain in Bengaluru)
 ((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780;
outside U.S. +91 80 6182 2062; ;))