MicroVision (NASDAQ:MVIS) said it is withdrawing a proposed public offering of its stock due to market volatility that had sent its shares into a tailspin, helping its shares higher in pre-market trade on Thursday.
The scanning technology company’s stock sank 28% on Wednesday after the company announced it planned to sell shares worth $75 million, subject to market and other conditions.
It said UBS Investment Bank was acting as the lead book-running manager for the proposed offering, with Cantor Fitzgerald & Co acting as the book-running manager and Craig-Hallum acting as the co-manager.
"In the interest of achieving the best value for our shareholders, we have decided to withdraw our previously announced public offering of common stock," CEO Sumit Sharma said in a statement.
"We were pleased with the interest shown in the MicroVision story but given the market volatility and recent stock price performance, we intend to explore other capital raising opportunities with a focus on shareholder value.”
The company’s stock recovered 18% to $5.43 ahead of the market opening.
MicroVision is a pioneering company in MEMS-based laser beam scanning technology that integrates MEMS, lasers, optics, hardware, algorithms and machine learning software into its proprietary technology to address existing and emerging markets.
Contact the author at stephen.gunnion@proactiveinvestors.com