Why Parametric Sound (HEAR) Stock Is Down Today

NEW YORK (TheStreet) -- Parametric Sound (HEAR) stock is tumbling on Thursday after the micro-cap announced a common stock offering. 

By midday, shares had tanked 26% to $9.62. 

Trading volume of 1.4 million shares was nearly 20 times its three-month daily average. 

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The home audio technology developer said it intends to offer around $45 million of common stock in an underwritten public offering. The company hasn't yet priced the offering. 

In a statement, Parametric said it intends to use net proceeds to "repay certain indebtedness and for working capital and other general corporate purposes."

Needham & Company will act as sole book-running manager, while Cowen and Company and Wedbush Securities will act as as co-lead managers. Lake Street Capital Markets is acting as co-manager for the offering. 

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