Applied Blockchain (OTCPK: APLD) shares were down 8% at noon Wednesday after rising to the Nasdaq, stocks reversed split, and a reduced initial public offering of $ 40M.
Shares of the company, which provides datacenter hosting for bitcoin and other blockchain networks, recently changed hands at $ 4.60, down 8%, around 11:25 am ET after opening at $ 4.70. The company conducted a 1-to-6 reverse stock split prior to uplisting.
APLD offers 8M shares at $ 5 per share, raising approximately $ 40M. Underwriters are given a 30 -day option to purchase up to 1.2M additional shares at the common price.
The company expects to earn net profits of $ 41.6M if the option is fully exercised or $ 36M if not exercised. APLD plans to use the proceeds in part to build additional datacenters and sign other energy agreements.
On Tuesday, the company said said in the filing it plans to offer 8.6M shares at between $ 6 to $ 8 per share, which would have raised around $ 60M if priced at $ 7.
B. Riley and Needham & Co were the lead bookrunners in the deal.
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