Redwire Corporation ( RDW ) (NYSE: RDW shares are trading higher Tuesday after the company announced the pricing of a major public stock offering.

What To Know: The offering includes 15,525,000 shares priced at $16.75 each, bringing in approximately $260 million in gross proceeds.

This offering represents a significant move by Redwire ( RDW ) to raise capital but it also introduces concerns about dilution, which likely contributed to the sharp drop in share price.

Redwire ( RDW ) stated that the proceeds will be used for a combination of purposes, including strengthening its balance sheet, reducing dilution by repurchasing some of its outstanding convertible preferred stock and repaying a seller note connected to its acquisition of Edge Autonomy.

RDW Price Action: Redwire ( RDW ) corporation shares were down 20.4% at $16.37 at the time of writing, according to Benzinga Pro.

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