AquaVenture Holdings Ltd (NYSE:WAAS) shares plummeted Tuesday, after the company reported a 4.1-million-share common stock offering
The Tampa-based company said it expects to grant the underwriters of the offering a 30-day option to purchase up to 615,000 additional ordinary shares. AquaVenture, its directors and officers and Element Partners (the Company's largest shareholder) have agreed to a lock-up (subject to certain exceptions) for a period of 90 days after the date of the prospectus supplement for the offering. The offering is subject to market and other customary conditions, and there can be no assurance as to whether or when the offering may be completed.
The Company intends to use the net proceeds of the offering for working capital and other general corporate purposes, including the acquisition of, or investment in, complementary businesses, products, services, technologies or other assets. Citigroup, RBC Capital Markets and UBS Investment Bank are acting as joint bookrunning managers for the offering.
Canaccord Genuity and Raymond James are also acting as joint bookrunning managers for the offering. JMP Securities, B. Riley FBR, Lake Street Capital Markets and Roth Capital Partners are acting as co-managers for the offering.
Tuesday’s news release enables AquaVenture to boast of its status as a "multinational provider of WAAS solutions that provide customers a reliable and cost-effective source of clean drinking and process water primarily under long-term contracts that minimize capital investment by the customer."
Shares descended $1.52, or 8.1%, to $17.32
