PSQ Holdings shares dip on stock offering following Trump Jr. board addition

 

On Wednesday, PSQ Holdings, Inc. (NYSE: PSQH) experienced a significant decline in share price, dropping by 32% following the company's announcement of a new stock offering. This comes after the company's shares saw an extraordinary increase of 270% the previous day due to news that Donald Trump Jr. would be joining its board of directors.

Donald Trump Jr., the eldest son of President-elect Donald Trump, expressed his enthusiasm about his new role, emphasizing PublicSquare's unique market position and commitment to the principles of liberty. He highlighted the company's growing marketplace and payments ecosystem and pledged his dedication to the success of the company's mission.

Today, PSQ Holdings disclosed its entry into definitive agreements for the sale of 7,813,931 shares of Class A common stock at $4.63 per share. The transaction is slated to generate gross proceeds of approximately $36.2 million in a registered direct offering. The closing of the offering is anticipated to occur around December 5, 2024, contingent upon the fulfillment of standard closing conditions.

Roth Capital Partners (WA:CPAP ) has been selected as the sole placement agent for the offering, tasked with facilitating the sale of the shares.

The capital raised from this offering, estimated at $36.2 million before the deduction of placement agent fees and other related expenses, is intended for general corporate use. PSQ Holdings plans to allocate the net proceeds toward general corporate necessities, which include bolstering its working capital.

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Source: Investing.com