Rubicon Technologies, Inc ( RBT ). witnessed a downturn in its stock performance on Tuesday subsequent to announcing two significant transactions: the sale of its fleet technology business unit and the issuance of convertible preferred stock.

What To Know: Valued at $94.2 million, Rubicon sold its fleet technology arm to Rodina Capital, a Florida-based private investment firm. This deal, approved by Rubicon’s Board of Directors and an independent special committee, included upfront cash and an earnout consideration of $74.2 million, alongside the issuance of $20 million in convertible preferred stock.

These strategic moves aim to fortify Rubicon’s long-term sustainability by enhancing its balance sheet, reducing debts and boosting liquidity. CEO Phil Rodoni expressed optimism, emphasizing Rubicon’s commitment to innovation and sustainability practices.

“Through these transactions, Rubicon has significantly strengthened its balance sheet, providing a substantial cash infusion into the business to allow us to achieve our ambitious goals,” Rodoni said.

Osman Ahmed, Rubicon’s lead independent director, also hailed the transactions as transformative, providing the financial strength needed for the company’s ambitious growth plans. Ahmed noted that the sale underscores Rubicon’s dedication to core principles and customer-focused solutions.

Market Response: Following Tuesday’s announcements, Rubicon shares experienced a decline, reflecting the investor response to the company’s strategic maneuvers aimed at fortifying its market position and delivering enhanced value to shareholders and customers.

See Also: George Soros’ Ex-Employee Just Sold A Large Nvidia Stake

RBT Price Action: Rubicon Technologies shares were down 13.84% at 30 cents Tuesday afternoon, according to Benzinga Pro.

Image: Rubicon Techonologies