Shares of Hall of Fame Resort & Entertainment Co.
HOFV,
plunged 33.3% toward a record low in premarket trading Wednesday, after the professional football company, which is partnered with the Pro Football Hall of Fame, announced the pricing of its $2.8 million public offering of common stock and warrants. The stock was on track to suffer the biggest one-day drop since the record 53.8% selloff on Nov. 16, 2020. The company sold 750,000 shares of common stock and warrants to buy an additional 750,000 common shares. Each share of common stock was sold together with one warrant to buy a common share at a combined price of $3.75, which compares with Tuesday’s closing price for the stock of $4.50. The warrants, which will be immediately exercisable to buy common shares at $3.75 each, will expire in five years. If all the warrants are exercised, the sale of 1.5 million shares would represent 26.4% of the total shares outstanding as of Aug. 8. The stock, which went public in February 2021, has tumbled 44.2% year to date through Tuesday, while the S&P 500
SPX,
has rallied 13.5%.
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