Manhattan Bridge Capital Inc.
) tumbled nearly 18% on Monday following the pricing announcement
of its common stock offering, before closing at $2.53 per share.
Notably, to prevent significant fall in share price, the intra-day
trading was halted for some time.
Manhattan Bridge Capital had announced the pricing of a public
offering comprising approximately 1.75 million shares of its common
stock at $2.85 per share. The offering, subject to certain closing
conditions, is expected to end on Jul 31.
Further, Manhattan Bridge Capital has granted a 45-day option to
the underwriters for covering over-allotments, if any. The option
includes purchase of additional 0.26 million shares of the common
stock at the public offering price, including the underwriter'
discount. Aegis Capital Corp. is the sole book-running
manager of the offering.
Manhattan Bridge Capital is expected to garner gross proceeds of
nearly $5 million from the stock offering. The company will be
utilizing the net proceeds primarily for the expansion of its loan
portfolio, and for working capital as well as general corporate
Since an initial public offering in 1999, this is Manhattan Bridge
Capital's first common equity primary issuance. We believe that the
capital-raising move will aid the company to lower its total debt
burden to some extent. Moreover, the company's capital ratios will
Some finance stocks worth considering include Capital One Financial
), Ally Financial Inc. (
) and Navient Corporation (
). Capital One holds a Zacks Rank #2 (Buy), while Ally Financial
and Navient carry a Zacks Rank #3 (Hold).
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