NEW YORK (TheStreet) -- SinoCoking Coal and Coke Chemical (SCOK) was falling 28.9% to $4.35 Thursday after entering into an agreement to sell $14.3 million worth of common shares to two institutional investors.
The mineral mining company announced it will sell 2,818,845 shares in a direct offering to the two unnamed investors. The shares in the offering are priced at $5.10 a share.
The investors will have an option to purchase up to $10 million of additional shares and warrants after the initial offering at $6.08 a unit.
SinoCoking plans to use the proceeds front eh offering for working capital and other general purposes.
TheStreet Ratings team rates SINOCOKING COAL & COKE CHEM as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SINOCOKING COAL & COKE CHEM (SCOK) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins."