Z Squared (ZSQR) Stock Rebounds After-Hours: Here's What's Going On

Z Squared Inc (NASDAQ:ZSQR) shares rose in after-hours trading on Tuesday after the company announced a new at-the-market equity offering that could allow it to sell up to $300 million of its common stock.

Z Squared closed Tuesday’s regular session at $8.49, down 22.75%. Shares rebounded in after-hours trading, rising 3.89% to $8.82.

Z Squared is a digital infrastructure company focused on cryptocurrency mining and expanding into artificial intelligence infrastructure and data centers.

Z Squared Launches $300M ATM Offering

According to an 8-K filing, Z Squared entered into a sales agreement with Roth Capital Partners, LLC that allows the company to offer and sell up to $300 million of its common stock from time to time through an at-the-market, or ATM, offering.

Under the agreement, Roth Capital may sell shares directly on the Nasdaq Global Market, through market makers or in negotiated transactions at prevailing market prices. The company will pay the agent a commission equal to 3% of the gross sales price of shares sold under the program.

Z Squared said it is not obligated to sell any shares under the agreement. The offering will be made under an automatic shelf registration statement filed with the SEC, giving the company flexibility to raise capital over time as needed.

Trading Metrics

Z Squared has a market capitalization of approximately $447.71 million.

The stock has traded between a 52-week high of $18.80 and a 52-week low of $8.00.

Over the past 12 months, ZSQR shares have gained 2.54%.

Benzinga Edge Stock Rankings indicate negative short, medium and long-term price trends.

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