Shares of Kaleyra Inc (NYSEAMERICAN: KLR) are on downward trend as the Company decided to commence an underwritten public offering of 5,537,974 shares of the Company’s common stock.
Probably the sole reason why KLR stock is down today even though the roses are not growing well in KLR garden since November 2019.
Kaleyra intends to grant the underwriters of the offering an option, exercisable for up to 30 days from the date of the final prospectus relating to the offering, to purchase up to an additional 830,696 shares of Common Stock at the public offering price, less underwriting discounts.
The Company intends to use the net proceeds that it will receive from the offering for working capital and other general corporate purposes, including strategic growth, as well as to repay certain of its current obligations related to its November 2019 business combination, inclusive of debt repayments and forward purchase obligations.
According to Kaleyra:
The Company may also use a portion of the remaining net proceeds to opportunistically acquire, license and invest in complementary products, technologies or businesses, although, it currently has no agreements or commitments to complete any such transaction.
Kaleyra Inc (NYSEAMERICAN: KLR) stock price is down more than 6 percent during pre-market hours.