Redwire stock fell by 17% due to dilutive share issue and expensive asset purchase.
From Nasdaq.: 2025-06-20 18:40:00
- Space exploration equipment specialist Redwire (NYSE: RDW) saw its share price fall by nearly 17% this week due to a dilutive share issue and a pricey asset buy.
- Redwire is floating a secondary issue of over 15.5 million shares at $16.75 each, aiming for total gross proceeds of approximately $260 million to strengthen its balance sheet and retire debt.
- Redwire acquired Edge Autonomy for over $1.1 billion, gaining an unmanned aerial vehicle developer with federal contracts to enhance its business growth and financial stability.
- While Redwire may face dilution concerns, strategic investments like the Edge Autonomy acquisition could position the company for future success and growth opportunities.
Read more at Nasdaq.: Why Redwire Stock Tumbled by Nearly 17% This Week