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Tag: Volcon

  • Volcon (VLCN) Stock Soars Following Strategic Equity Deal In Digital Assets

    Volcon (VLCN) Stock Soars Following Strategic Equity Deal In Digital Assets

    Volcon, Inc. (NASDAQ: VLCN) witnessed a significant market rally following its announcement of a major equity deal tied to its digital asset strategy. As of the latest session, shares of VLCN surged by an impressive 249.42%, trading at $32.23.

    The stock movement was spurred by VLCN’s entrance into securities purchase agreements with select institutional and accredited investors through a private placement, involving the sale of 50,142,851 common shares—or equivalent pre-funded warrants—at $10.00 each. The transaction is expected to yield over $500 million in gross proceeds, prior to deductions for associated fees and expenses.

    Leading Investors and Strategic Partnerships

    The financing round was led by Empery Asset Management, LP, and included strong participation from notable digital asset and blockchain venture firms such as Pantera, FalconX, Borderless, Relayer Capital, and RK Capital.

    Traditional financial investors also played a significant role. Clear Street LLC was appointed lead placement agent, while Aegis Capital Corp. served as co-placement agent and exclusive financial advisor for the deal.

    Bitcoin as Primary Reserve Asset

    Volcon has made clear its intention to allocate at least 95% of the gross proceeds toward acquiring Bitcoin, positioning the cryptocurrency as the company’s principal treasury reserve asset.

    To facilitate this transition, the firm signed a Strategic Digital Assets Services Agreement with Gemini Nustar LLC, an affiliate of Gemini Trust Company, LLC. The move aligns with broader trends toward decentralization and aims to counter the effects of currency devaluation, according to company representatives.

    New Board Appointments and Strategic Execution

    To guide the new treasury initiative, Volcon appointed Ryan Lane, Ian Read, Rohan Chauhan, and Matthew Homer to its board of directors, with their terms lasting until the next shareholder meeting.

    Additionally, three members from the Empery team will join Lane in operationalizing the Bitcoin strategy. The collaboration between Volcon (VLCN) and Gemini is aimed at creating a low-cost, capital-efficient, and best-in-class Bitcoin treasury framework that reflects the company’s strong belief in Bitcoin as the future’s digital store of value.

  • Volcon, Inc. (VLCN) declined in the current market; here is why?

    Volcon, Inc. (VLCN) declined in the current market; here is why?

    The stock of Volcon, Inc. (VLCN) declined in the current market after the company announced its underwritten public offering. VLCN values at around $2.90, losing more than 23% from the previously closed value. At the end of the last trading session, the stock closed at around $3.78. The stock volume traded in the last trading session was around 150.78K shares.

    The reason for the stock decline

    Volcon, Inc. (VLCN) announced today the pricing of an underwritten public offering of 6,666,667 shares of common stock, par value $0.00001 per share, at a public price of $3.0 per share. The offering was made in connection with the company’s acquisition of Volcon, Inc. Before underwriting discounts and commissions, as well as anticipated Offering expenditures; the company anticipates total proceeds of approximately $20.0 million.

    If the underwriter exercises its 45-day option to purchase up to an additional 1,000,000 shares of Common Stock, the total gross proceeds from the Offering will be approximately $23 million, according to the underwriter’s estimates. Aegis Capital Corporation is the sole book-running manager for the Offering. On February 1, 2022, the business estimates that VLCN will complete the deal will all the criterila fulfilled

    Under an effective registration statement on Form S-1 (No. 333-262343) filed with the Securities and Exchange Commission or SEC on January 28, 2022, Volcon, Inc. makes the securities described above available to the public. The final prospectus will be filed with the Securities and Exchange Commission and made available on the Commission’s website.

    Effect on the stock

    The stock of Volcon, Inc. (VLCN) fell when the firm stated that it would be liquidating its equities. The company’s stock is declining due to this reason the investors are hesitant to invest in it.

    Conclusion

    Following the announcement of Volcon, Inc.’s (VLCN) underwritten public offering, the shares plummeted in the stock market. The net proceedings from the public offering, which totaled $20 million, the company will use it for working capital, general corporate expenses, administrative expenses, and sales and marketing.