Ever since Synchronoss Technologies Inc (NASDAQ:SNCR) announced that it raised $100 million through an equity offering last week, the stock has been in the middle of a sustained rally and that continued on Tuesday.
Yesterday, the stock jumped by 10.50% to take its gains over the course of the past week to as much as 48%. In this situation, it might be a good idea for investors to take a closer look at the equity offering from Synchronoss recently. The company offered as many as 38.5 million shares at the rate of $2.6 each to raise $100 million as part of a secondary share sale.
In this regard, it should be noted that the price at which the stock was offered was actually discounted by as much as 10.7% from the most recent closing price. However, that is not all. The underwriters for the offering have also picked up the option of acquiring an additional 3.8 million shares in the company within 30 days.
The proceeds from the share sale, Series B Preferred share offering and the senior notes are going to help the company in redeeming Series A Convertible Participating Perpetual Preferred Stock. In addition to that, Synchronoss also plans to repay the outstanding amount from its revolving credit facility.
Market Reaction:
On Tuesday, SNCR stock jumped 10.50% to $3.67 with more than 2.88 million shares, compared to its average volume of 1.09 million shares. The stock has moved within a range of $ 3.3282 – 3.6700 after opening the trade at $3.32. Over the past 52-week, the stock has been trading within a range of $2.3500 – 6.5900.
 Stock Rockets 48% in Week: More to Come?){kind=link}