By Dhirendra Tripathi
Investing.com – Quantumscape (NYSE: QS ) shares fell a sharp 11% on Tuesday, a day after the company disclosed its plans to sell 13 million shares of its Class A common stock.
The underwriters will have a 30-day option to buy another 1.950 million shares of the same stock. The offering is expected to be priced after the market closes Wednesday, Bloomberg reported.
Traders didn’t appreciate the electric vehicle battery maker’s decision to go for share dilution, coming as it does just five months after it went public through a merger with a black-check company.
The Volkswagen- (OTC: VWAPY ) and Bill Gates-backed electric-car battery manufacturer intends to use the net proceeds to build a larger pre-pilot line called QS-0 and to cover its full share of equity contributions to its joint venture with VW for the previously disclosed 20GWh expansion of QS-1 joint manufacturing facility.
The company has been in the news for working on a solid-state battery technology that promise to solve the critical problem areas in a lithium-metal anode battery.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.