Author Bio
Evan is a senior technology specialist at The Motley Fool. He was previously a senior trading specialist at Charles Schwab, and worked briefly at Tesla. Evan graduated from the University of Texas at Austin, and is a CFA charterholder. Follow @TMFNewCow
What happened
Shares of
SOS Limited (NYSE:SOS) tanked today, down by 12% as of 11:30 a.m. EST, after the company announced the exercise of warrants. The corporate action will be dilutive to existing investors but allow SOS to raise more capital.
So what
Certain investors have agreed to exercise warrants to purchase up to 23.9 million American depository shares (ADSes) at an exercise price of $4.05. The gross proceeds from the exercise are expected to be approximately $96.7 million, and SOS has agreed to give the exercising warrant holders new unregistered warrants to purchase ADSes at an exercise price of $7 per ADS. Those new warrants will be good for five years before expiratio