Zapata Computing (NASDAQ:ZPTA) stock is rising higher on Wednesday after the artificial intelligence (AI) company revealed the details of a secondary share offering.
A filing with the Securities and Exchange Commission (SEC) reveals details of a secondary offering from investors in Zapata Computing. This will cover 15,850,336 shares of ZPTA stock, warrants for another 13,550,000 shares and 25,049,982 shares underlying warrants.
Zapata notes that it won’t see any proceeds from these secondary sales. The company also says it’s unlikely to see money from the warrants as they have an exercise price of $11.50 each, as compared to its stock’s price closing price of $1.56 per share.
The secondary sellers in this offering can sell shares all at once or over time, either at market prices or at negotiated prices. The company also notes that the number of shares available well exceeds its float, which could negatively impact its stock price.
ZPTA Stock Movement on Wednesday
With all of this news comes heavy trading of ZPTA stock this morning. That has more than 8 million shares of the stock changing hands as of this writing. That’s well above its daily average trading volume of about 2 million shares.
ZPTA stock is up 16.7% as of Wednesday morning but was down 85.7% year-to-date when markets closed on Tuesday.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
