Hall of Fame Resort & Entertainment stock plummets after large stock offering prices at deep discount

/ / News

Shares of Hall of Fame Resort & Entertainment Co. plummeted 54.0% toward a record low on heavy volume in morning trading Monday, after the resort, entertainment and media company centered around professional football announce the pricing of a large public offering of stock at a substantial discount. Volume spiked to 15.0 million shares, compared with the full-day average of about 4.2 million shares. The company said it’s public offering of 17.86 million units, which consisted of one common stock and one warrant immediately exercisable to buy on share of common stock, priced at $1.40 per unit. The price per unit was 43.8% below Friday’s stock closing price of $2.49. The company had 32.74 million shares outstanding as of Nov. 3. Earlier this month, the stock had soared after the company announced a media deal with Sports Illustrated Studios, which overshadowed the “going concern” language the company added to its quarterly filing. The stock, which went public on July 2, has plunged 73.3% over the past three months, while the S&P 500 has gained 7.5%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.