3D Systems Corp's stock moved sharply lower in premarket hours, falling more than 14% to trade below $3.10 after the company completed a follow-on equity offering valued at $50 million.
Late Wednesday, the Rock Hill, South Carolina-based 3D printer manufacturer sold about 16.4 million shares at $3.05 each. The sale was increased from an originally planned $40 million and was priced at a 15.5% discount to the stock's previous closing price.
According to the company's prospectus, the net proceeds from the offering will be directed toward funding operations and pursuing growth initiatives. The prospectus specifically lists capital expenditures, working capital, and other general corporate purposes as intended uses of the funds.
Needham and Craig-Hallum were named as joint bookrunners on the transaction.
Prior to the pricing of the offering, 3D Systems reported roughly 146.9 million shares outstanding. The newly sold shares total approximately 16.4 million, and the offering's size and pricing coincided with a notable intraday move in the stock.
Through the close of trading on Wednesday, the company's shares had appreciated about 92% during the current quarter. The premarket decline following the offering's pricing cut into that quarterly gain.
- Offering details: Approximately 16.4 million shares sold at $3.05 each, totaling $50 million; offering was increased from $40 million.
- Use of proceeds: Net proceeds are earmarked for operations and growth initiatives, including capital expenditures, working capital, and general corporate purposes.
- Market context: Shares fell more than 14% in premarket trading after the offering was priced; the stock had risen about 92% during the current quarter through Wednesday's close.
This article reports the company's announced financing terms, the market's immediate reaction in premarket trading, and the stated intended use of proceeds as described in the prospectus and company filings. No additional developments beyond those disclosures were reported.