Shares of A-Power Energy (APWR) which had been on a tear have given it all back in a just a couple weeks with the private placement this morning providing a staggering blow. The company announced that it had closed a private placement for $83 million in cash to institutional investors with the bulk of the proceeds being used to fund the EVATECH acquisition. Why the company would issue these shares at $14.37 crushing existing shareholders in the process is beyond me. It appears to have come out of nowhere and in the process automated stops are being triggered left in right triggering a massive sell off. For the longer term holder of APWR an entry under $14 sure looks like a gift.
quite a bit of confusion as to why the company would dilute shares to raise cash when the company has little debt.. doesn’t smell right which is probably why the stock saw zero relief buying today.. will be interesting to see how this plays out.