Rani Therapeutics Holdings Inc (NASDAQ:RANI) shares are trading lower by 31.4% to $2.18 Tuesday afternoon after the company announced a $10 million direct offering of 3 million shares at $3 per share.

What Else: The deal involves the sale of 3 million shares of Class A common stock, pre-funded warrants for an additional 333,333 shares, and Series C common warrants for up to 3,333,333 shares, with a combined purchase price of $3.00 per share.

As part of the agreement, Rani Therapeutics will cancel all outstanding Series A common warrants, previously issued in July 2024, totaling 3,246,753 shares.

Maxim Group LLC is the sole placement agent for this offering, which is anticipated to close on or around October 16, pending customary closing conditions.

The gross proceeds from this offering are expected to be approximately $10 million, before any deductions for fees or expenses.

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Should I Sell My RANI 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 Rani Therapeutics Hldgs have gained 18.93% year to date. This compares to the average annual return of -45.56%, 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.

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RANI has a 52-week high of $8.75 and a 52-week low of $1.82.