Vicinity Motor Corp (NASDAQ:VEV) shares are trading lower by 12.8% to $0.56 during Tuesday's session after the company announced pricing of a $2.5 million registered direct offering.
Vicinity will sell 4,807,692 common shares and warrants to purchase an additional 4,807,692 shares at a combined price of $0.52 per share and warrant. The warrants, priced at $0.64 per share, are exercisable immediately and expire in five years. The total proceeds from this offering are expected to be approximately $2.5 million before expenses.
The funds will be used for working capital and general corporate purposes. The closing is expected around July 17, pending customary conditions, with A.G.P./Alliance Global Partners serving as the sole placement agent.
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Should I Sell My VEV Stock?
Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.
Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.
Shares of Vicinity Motor have lost 35.64% year to date. This compares to the average annual return of -52.31%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.
Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Vicinity Motor stock currently has an RSI of 61.21, indicating neutral conditions.
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VEV has a 52-week high of $1.38 and a 52-week low of $0.30.