Why Beam Global Stock Plummeted Today

Evan Niu, CFA, The Motley Fool
·2-min read
Why Beam Global Stock Plummeted Today

Shares of Beam Global (NASDAQ: BEEM) plummeted today, down by 11% as of 3:25 p.m. EST, after the company priced a secondary offering. Beam, which offers electric vehicle (EV) charging services powered by solar energy, has agreed to sell 250,000 shares at $30 per share, raising gross proceeds of $7.5 million. It's not uncommon for companies to price secondary offerings at a discount to the market in order to incentivize investors to purchase the newly issued shares, which helps the issuer raise fresh capital.