BBAI Stock Alert: BigBear.ai Announces Direct Offering

BigBear.ai (NYSE:BBAI) stock is on the move Friday after the company announced details of a registered directing offering for its shares.

This registered direct offering has the company selling 11,848,341 shares of BBAI stock as well as warrants for up to another 8,886,255 shares. These are being sold together in units that are priced at $2.11 per share. The warrants have an exercise price of $2.32 per share.

BigBear.ai is expecting to generate gross proceeds of about $25 million from this stock offering. The company doesn’t say what it plans to do with these funds after the offering closes on June 13, 2023.

How This Affects BBAI Stock

Just like with any other offering, this one adds more outstanding shares of BBAI. Doing so erodes the stakes of current investors in the company. Doing so can cause a company’s tock to drop after the offering is announced.

However, that’s not the case with BBAI stock on Friday morning. Instead, the company’s shares are up slightly alongside the news. It’s likely that the offering price being the same as yesterday’s close, as well as the higher exercise price for warrants, is helping with this. Oftentimes offerings value shares below their current price, which drops the stock.

BigBear.ai is an artificial intelligence (AI) company. Its focus is on offering AI-powered analytics and cyber solutions to help its customers better understand data. It was founded in 2020 and went public via a merger in 2021.

BBAI stock is up about half a percentage point as of Friday morning.

Investors looking for more of the most recent stock market news will want to stick around!

We have all of the hottest stock market coverage traders need to know about on Friday! Among that is what’s moving shares of Tesla (NASDAQ:TSLA), Greenlane (NASDAQ:GNLN), and Elevation Oncology (NASDAQ:ELEV) stock this morning. You can catch up on all of this news at the links below!

More Stock Market News For Friday

• Tesla (TSLA) Stock Jumps on General Motors Partnership
• Why Is Greenlane (GNLN) Stock Down 5% Today?
• Why Is Elevation Oncology (ELEV) Stock Down 26% Today?

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

More From InvestorPlace

• Buy This $5 Stock BEFORE This Apple Project Goes Live
• Wall Street Titan: Here’s My #1 Stock for 2023
• The $1 Investment You MUST Take Advantage of Right Now

The post BBAI Stock Alert: BigBear.ai Announces Direct Offering appeared first on InvestorPlace.