Why Did GLND Stock Crash 30% In Pre-Market Today?

• The company is offering 17.5 million shares at $4 each.
• The offering includes accompanying warrants, which will allow investors to buy additional shares at $5 over the next five years.
• On Monday, Greenland Energy signed an agreement with Halliburton for drilling in the Jameson Land Basin in eastern Greenland.

Shares of Greenland Energy (GLND) tumbled more than 30% in pre-market trading on Tuesday, deepening a sharp two-session sell-off as investor sentiment soured following the company’s $70 million equity offering, priced at a steep discount.

If the pre-market levels hold after the opening bell, GLND shares would trade at their all-time low. The stock has lost nearly 26% over the last couple of sessions.

Fresh Capital Raise At 26% Discount

Greenland Energy is set to raise fresh capital after pricing a public offering of 17.5 million shares at $4 each, aiming to generate about $70 million in gross proceeds. This represents a 26% discount to the stock’s closing price of $5.41 on Monday.

The offering includes accompanying warrants, which will allow investors to buy additional shares at $5 over the next five years. The deal is expected to close on April 29.

The company said it plans to use the proceeds for general corporate purposes, including working capital and operating expenses.

How Did Retail Traders React?

Retail sentiment on Stocktwits changed to ‘bullish’ from ‘extremely bullish’ a day earlier, while message volumes on the platform soared a whopping 14,800% over a 24-hour period, according to Stocktwits data.

Users debated the impact of the offering, with one stating it was expected.

However, another user said the pricing was expected to be higher.

Halliburton Deal To Drive Drilling In Jameson Land Basin

On Monday, Greenland Energy signed an agreement with Halliburton to support its upcoming drilling campaign in the Jameson Land Basin, located in eastern Greenland. The deal covers consulting, logistics, and full well and drilling services for the onshore project.

It builds on earlier partnerships with Stampede Drilling and Desgagnés as part of the company’s broader Arctic strategy. Greenland Energy expects to drill its first two wells later this year. The basin is seen as a high-potential, largely unexplored region with significant discovery upside.

The stock has declined 39% so far this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.