Up Or Down? Harbor Custom Development Inc (NASDAQ:HCDI)

Harbor Custom Development Inc (NASDAQ:HCDI) continues to move up and trading with moderate gains on Thursday after the news.

Market Action

As of 10:32, HCDI stock jumped 11 cents or 3.27 % to $3.48 with more than 172K shares, compared to its average volume 574K shares. The stock has moved within a range of $3.3929 – 3.5000 after opening the trade at $3.48..

Major Trigger:

Harbor Custom Development, Inc. Announces Pricing of $30 Million Public Offering of Convertible Preferred Shares & Warrants

Key Highlights:

• announced the pricing of its underwritten public offering (the “Offering”) of 1,200,000 shares of 8.0% Series A Cumulative Convertible Preferred Stock. Each share of 8.0% Series A Cumulative Convertible Preferred Stock will be accompanied by three warrants (“Warrants”), each Warrant to purchase one share of Common Stock. Each share of Series A Cumulative Convertible Preferred Stock and accompanying three Warrants is being offered at a price of $25.00.
• The shares of Series A Preferred Stock and Warrants will be issued separately but can only be purchased together in this Offering. Harbor Custom Homes® has granted the underwriters a 45-day option to purchase up to 180,000 additional Preferred Shares and/or 540,000 additional Warrants solely to cover over-allotments, if any.
• Each share of Preferred Stock is convertible into common shares at a conversion price of $4.50 per common share, or 5.556 common shares, at any time at the option of the holder, subject to certain customary adjustments. The Warrants are exercisable immediately, have an exercise price of $5.00 per share and expire five years from the date of issuance.
• If the trading price of Harbor Custom Homes’® common stock equals or exceeds $7.65 per share for at least 20 trading days in any 30 consecutive trading day period, the Company can call for mandatory conversion of the Preferred Stock. Dividends on the Preferred Stock shall be cumulative and paid monthly in arrears starting July 20, 2021, to the extent declared by the board of directors of the Company.  The Preferred Stock will not be redeemable for a period of three years from issuance, except upon change of control.