Sidus Space Shares Sink: What's Driving The Sell-Off?

Sidus Space, Inc. (NASDAQ:SIDU) shares are trading lower Tuesday after the company announced a proposed public offering of common stock.

• Sidus Space stock is among today’s weakest performers. What’s weighing on SIDU shares?

What To Know: Sidus Space announced the pricing of a best-efforts public offering of approximately 19.23 million shares of its Class A common stock at a public offering price of $1.30 per share. The company expects to raise approximately $25 million in gross proceeds, before deducting placement agent fees and offering expenses.

All of the shares in the offering are being sold by the company. Net proceeds are expected to be used for sales and marketing, operational costs, product development, manufacturing expansion and working capital and general corporate purposes.

Sidus Space said the offering is expected to close on Dec. 24, subject to customary closing conditions. ThinkEquity is acting as the sole placement agent for the offering.

How To Buy Sidus Space Shares

By now you're likely curious about how to participate in the market for Sidus Space – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

See Also: How Is The Market Feeling About Charles Schwab Corp?

SIDU Price Action: Sidus Space shares soared on Monday amid strength across space-related names. At the time of writing, Sidus shares are trading 32.75% lower at $1.53, according to data from Benzinga Pro.

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