Stocks In News: ELMS, CLVS, TBLT
3:05 pm Friday, June 17th, 2022
Electric Last Mile Solutions (NASDAQ:ELMS) stock is rocketing higher on Friday as investors pump up the shares after its bankruptcy announcement. Earlier this week, Electric Last Mile Solutions announced a Chapter 7 bankruptcy filing. This will have the company liquidating its assets to pay off creditors before closing down its business. This comes as ELMS stock went public last year through a special purpose acquisition company (SPAC) merger. It also follows the resignation of the company’s chairman and CEO back in February.
This week has been a relatively dismal one for overall markets. However, investors in specific companies like Clovis Oncology (NASDAQ:CLVS) have seen impressive gains. CLVS stock started the week with a price of 66 cents per share. Now, it’s trading closer to $1.10 per share. Today’s move appears to coincide with a number of previous catalysts that took the stock on a nice ride this past week.
ToughBuilt (NASDAQ:TBLT) stock is falling on Friday following the tool company revealing a proposed public stock offering. That proposed public stock offering is priced at $6 million. It includes 3.16 million shares of TBLT stock and prices them at $1.90 each. Included with each share purchase is a warrant exercisable for the same $1.90 price. It’s easy to understand why investors aren’t happy about the public stock offering. First off, any public offering is going to dilute a shareholder’s stake in a company. Secondly, they often value the shares below their current trading value.
