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Why Joby Aviation Stock Just Crashed
['Rich Smith', 'Https', 'Www.Facebook.Com Themotleyfool']
The Motley Fool
Joby needs cash, and it's just found a way to raise a lot of it.
And now Joby has done just what I said it would do -- issued a lot of stock -- and its stock is down 17.2% as of 12:25 p.m. Thursday!
This morning, Joby clarified that it will actually float $600 million in convertible debt and sell 52.9 million shares of stock.
Priced at $11.35 per share, that's $600 million -- so it's not $1 billion but $1.2 billion that Joby is actually raising.
Additionally, Morgan Stanley will sell 5.3 million shares "of Joby's common stock, borrowed from third parties ... to facilitate hedging transactions."