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DAVE Stock Alert: Why Are Shares of Banking App Dave Plunging Today?

Dave (NASDAQ:DAVE) stock is taking a beating on Monday after the financial services company announced a public stock offering.

Source: Ricky Of The World / Shutterstock.com

A filing with the U.S. Securities and Exchange Commission (SEC) re…

Dave (NASDAQ:DAVE) stock is taking a beating on Monday after the financial services company announced a public stock offering.

Source: Ricky Of The World / Shutterstock.com

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A filing with the U.S. Securities and Exchange Commission (SEC) reveals that the company intends to offer up a massive amount of shares, as well as warrants for its stock, to investors. There’s also details about potential stock offerings from selling shareholders in the filing.

Let’s start with the Dave stock offering. It includes 59,895,003 shares of the company’s stock in total. Among that is 48,450,639 shares of Class A stock issuable on conversion of Class D shares, 5,100,214 Class A shares issuable on conversion of private warrants, as well as 6,344,150 Class A shares issuable on conversion of public warrants.

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Dave notes that the warrants have an exercise price of $11.50 per share. The company expects the stock offering to generate funds of $131.61 million. It also expects to gain another $210,000 from the conversion of Option stocks. Dave plans to use these funds for general corporate purposes.

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Now let’s go over the selling shareholders. That offering is made up of 331,404,740 shares of Class A DAVE stock. Among that is 21 million shares from PIPE funding after it SPAC merger last month, 5,392,528 founder shares, as well as many others from mergers and leaders of the company.

Dave notes that these shareholders will control when and how they sell their shares of the company’s stock. It also mentions that the company won’t see any proceeds from the sale of these shares.

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DAVE stock is down 33.4% as of Monday morning.

Investors seeking more stock market news today are in the right place!

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We’ve got all the most recent stock coverage that traders need to know about for Monday! That includes what’s happening with Splunk (NASDAQ:SPLK) stock this morning, the latest Coinbase (NASDAQ:COIN) outage news, and more. You can get all of these details from the following links!

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More Stock Market News for Monday

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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.

With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that  InvestorPlace.com’s writers disclose this fact and warn readers of the risks. 

Read More: Penny Stocks — How to Profit Without Getting Scammed

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