Why Ideanomics Stock Popped Today

What happened

Shares of Ideanomics (NASDAQ:IDEX) have popped today, up by 17% as of 11:50 a.m. EST, after the company filed  for a $150 million stock offering. The deal is being conducted as an at-the-market (ATM) offering.

So what

Ideanomics is tapping Roth Capital Partners as its agent to sell stock. Under an ATM offering, the agent sells stock on behalf of the issuer at prevailing prices directly into the market. The shares are being offered pursuant to a shelf registration that Ideanomics had previously filed. Shelf registrations allow companies to register securities for sale at a later time.

Green stock chart going up

Image source: Getty Images.

Ideanomics is an electric vehicle (EV) distributor in China, but it has recently expanded into the electric-tractor market in the U.S. following an investment in California-based Solectrac.

Now what

The company plans to use the net proceeds of the deal for general corporate purposes, including working capital, paying down debt, or acquisitions, according to the prospectus. In January, Ideanomics completed two acquisitions, wireless charging start-up WAVE for $50 million (consisting of $15 million in cash and $35 million in stock) and title and settlement provider Timios for $40 million.

Ideanomics had finished the third quarter of 2020 with $27.6 million in cash and has not yet reported fourth-quarter earnings. That financial release is scheduled  for March 31. The company recently said that its Treeletrik subsidiary, which sells EVs in Malaysia, was placing orders with its manufacturing partners for over 1,000 units during the fourth quarter.

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View more information: https://www.fool.com/investing/2021/03/01/why-ideanomics-stock-popped-today/

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