Investing
Cimatron Holders Unload Shares at Big Discount in Secondary Stock Offering
Published:
Cimatron Ltd. (NASDAQ: CIMT) is seeing its shares get crushed on news that it is raising capital via a share sale in an underwritten secondary offering. Just keep in mind that the capital raise is actually by shareholders who sold 2.183 million shares at $6.25 per share. This is a small cap company and the shares are taking a beating over the discount.
The use of funds here is not for the company. Cimatron confirmed that it will not receive any proceeds from the sale of the shares by the selling shareholders.
Roth Capital Partners is the sole manager for the offering. The selling shareholders have granted Roth Capital an overallotment option to purchase up to 327,494 more ordinary shares at the same price and terms of the offering. Note that the selling shareholders in this stock offering also offered and sold Cimatron ordinary shares in an underwritten public offering in March 2013.
Cimatron has a market cap of only about $67 million as of Monday’s closing bell at $7.20, and it has traded in a 52-week range of $3.01 to $12.88. Shares are indicated down more than 10% at $6.42 so far on Tuesday.
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