Shares of Hall of Fame Resort & Entertainment Co. (HOFV) took a significant hit, plummeting 33.3% in premarket trading on Wednesday. The professional football company, known for its partnership with the Pro Football Hall of Fame, disclosed the pricing of its latest public offering of common stock and warrants. This announcement marks the largest one-day drop since November 16, 2020, when the stock experienced a staggering 53.8% selloff.
Public Offering Details
The company successfully sold 750,000 shares of common stock and warrants, providing an opportunity to purchase an additional 750,000 common shares. Each share of common stock was sold together with one warrant at $3.75 per combination. It is worth noting that this price is lower than Tuesday's closing price of $4.50 per stock.
These warrants offer immediate exercisability at $3.75 each and are set to expire in five years. If all the warrants are exercised, the sale of 1.5 million shares will represent approximately 26.4% of the total outstanding shares as of August 8.
Since going public in February 2021, Hall of Fame Resort & Entertainment Co.'s stock has faced significant challenges, experiencing a 44.2% decline year-to-date. In contrast, the S&P 500 index has rallied 13.5% over the same period.
Despite the recent slump, Hall of Fame Resort & Entertainment Co. remains committed to its vision of creating unrivaled experiences for football fans around the world.