Marathon Patent Group Inc (MARA) Dips After Stock Offering Priced at Deep Discount
Shares of Marathon Patent Group Inc (NASDAQ:MARA) slumped nearly 15% to $5.35 in after-hours trading Monday, following the announcement of a dilutive equity offering.
The IP licensing firm priced 1,000,000 shares at $5.00 apiece, which is well below today’s closing price of $6.30 per share. The stock’s 50-day moving average is $2.39 and its 200-day moving average is $0.83.
In addition to that deep discount, the offering represents nearly 10% dilution for existing shareholders.
However, the offering did raise $5 million, which will provide the company additional liquidity to meet its working capital and general corporate cash requirements.
The shares were offered and are being sold to certain accredited investors in a registered direct offering. The offering is expected to close on or about December 14, 2017.
Marathon Patent is an IP licensing and commercialization company. It acquires and manages IP rights from a variety of sources, including large and small corporations, universities and other IP owners. The company’s commercialization division is focused on the full commercialization lifecycle which includes discovering opportunities, performing due diligence, providing capital, managing development, protecting and developing IP, assisting in execution of the business plan, and realizing shareholder value.