DPW Holdings (DPW) Stock: Gaining After Terminating Offering

DPW Holdings Inc (NYSEAMERICAN: DPW) is having a great start in the market today, and for good reason. The company announced that it has terminated a dilutive transaction, exciting investors who are sending the stock toward the top. Today, we’ll talk about:

  • The termination of the dilutive transaction;
  • what we’re seeing from DPW stock as a result; and
  • what we’ll be watching for ahead.

DPW Stock Gains After Transaction Termination

As mentioned above, DPW Holdings is having a great start to the trading session this morning after announcing that it has terminated a dilutive transaction. The news came via press release early this morning.

In the release, DPW said that it had sent notice to Wilson-Davis & Co., Inc. Through the notice, the company terminated the At-The-Market Issuance Sales Agreement.

The agreement, dated October 15, 2019, surrounded a dilutive transaction that would have drove millions in the company at the expense of investors. The company said that the termination became effective as of April 1, 2019.

Finally, DPW said that sales of its common stock pursuant to the Agreement were registered on its effective shelf registration statement on Form S-3.

What We’re Seeing From The Stock 

As investors, one of the first lessons that we learn is that the news moves the market. When it comes to DPW, the news proved to be overwhelmingly positive.

After all, the termination of the ATM agreement means that the company will not be diluting current investors through this transaction. So, it’s not surprising to see that excited investors are sending the stock on a run for the top.

As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:39), DPW is trading at $0.34 per share after a gain of $0.09 per share or 35.88% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on DPW. In particular, we’re interested in following the story surrounding the company’s continued work to bring value to investors. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks.

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