By Dhirendra Tripathi
Investing.com – Quantumscape (NYSE:) shares fell a sharp 11% on Tuesday, a day after the company disclosed its plans to sell 13 million shares of its Class A common stock.
The underwriters will have a 30-day option to buy another 1.950 million shares of the same stock. The offering is expected to be priced after the market closes Wednesday, Bloomberg reported.
Traders didn’t appreciate the electric vehicle battery maker’s decision to go for share dilution, coming as it does just five months after it went public through a merger with a black-check company.
The Volkswagen- (OTC:) and Bill Gates-backed electric-car battery manufacturer intends to use the net proceeds to build a larger pre-pilot line called QS-0 and to cover its full share of equity contributions to its joint venture with VW for the previously disclosed 20GWh expansion of QS-1 joint manufacturing facility.
The company has been in the news for working on a solid-state battery technology that promise to solve the critical problem areas in a lithium-metal anode battery.
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