Universe Pharmaceuticals Inc (NASDAQ:UPC) shares are trading lower by 58% to $1.40 during Monday's session after the company announced a definitive agreement with investors for the purchase and sale of 18.75 million ordinary shares, expecting gross proceeds of $15 million.

What Else: Universe Pharmaceuticals has announced a registered direct offering, entering into a definitive agreement with investors to sell 18.75 million ordinary shares at 80 cents per share, raising approximately $15 million.

The offering includes the option for pre-funded warrants in place of the shares, with an exercise price of $0.001 per share. In addition, the company will issue warrants to purchase up to 18.75 million shares at the same price, with a 5-year term.

The transaction is expected to close by December 10. Univest Securities, LLC is acting as the placement agent.

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Should I Sell My UPC Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of Universe Pharmaceuticals have decreased by 92.91% in the past year. An investor who bought shares of Universe Pharmaceuticals at the beginning of the year would take a loss of $26.67 per share if they sold it today. The stock has fallen 58.38% over the past month, meaning an investor who bought shares on Nov. 1 would see a capital loss of $2.67.

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UPC has a 52-week high of $64.80 and a 52-week low of $1.00.