Superconductor Technologies, Inc. (NASDAQ: SCON) is having a great start to the trading session in the market this morning. After an SEC filing announcing the pricing of an offering, investors are snapping up shares left and right. Here’s what’s going on:
SCON Stock Rockets On SEC Filing
Early this morning, Superconductor Technologies filed form 424B4 with the SEC. In the filing, the company announced the pricing of an offering of common stock and warrants to purchase common stock.
SCON is offering 7.934 million Class A Units. Each Unit will consist of one share of common stock and one five year investor warrant. The warrants issued will allow for the purchase of one share of common stock at a price of $0.25.
The company said that the Class A Units will not be certificated. It also said that the share of common stock and the investor warrant are immediately separable and will be issued seperately in the offering.
The company is also offering 3.9 million Class B Unit. These units are for purchasers whose purchase of Class A Units would result in a beneficial ownership of 4.99%. In lieu of Class A Units, these investors have the opportunity to purchase Class B Units.
Class B Units will consist of one pre-funded warrant to purchase one share of common stock at an exercise price of $0.001 per share or a pre-funded warrant. Class B Unit purchasers will also receive one five year investor warrant to purchase one share of common stock at an exercise price of $0.25.
Finally, SCON said that it is also offering 11.834 million shares of common stock. These shares will be issuable from time to time upon exercise of the investor warrants. The company will also be offering 3.9 million shares of common stock that are issuable from time to time upon the exercise of the pre-funded warrants offered in the prospectus.
Why Investors Are So Excited About The News
In general, when we hear the word offering, we think dilution and stay away. However, often times, when a prospectus is filed, a stock will run. That’s exactly what we’re seeing form Superconductor Technologies today. So, what’s the reason for all of the excitement? Well, there are a few:
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