Webull Stock Slides On $1 Billion Equity Financing Deal And Dilution Concerns

Shares of Webull Corp (NASDAQ:BULL) are trading lower Monday afternoon after the company detailed a new committed equity financing agreement in an SEC filing on Friday. While the deal provides significant potential capital, it also raises concerns about shareholder dilution.

What To Know: The filing outlines a standby equity purchase agreement with an affiliate of Yorkville Advisors. Under the agreement, Webull has the right, but not the obligation, to sell up to $1 billion of its Class A ordinary shares to the investor over a 36-month period. The shares would be sold at a 2.5% discount to the market price.

Webull is registering the potential resale of over 75 million shares by the investor, which the filing notes represents approximately 15.5% of Webull’s total ordinary shares currently outstanding.

The prospectus warns that the sale of these shares, or the perception that sales could occur, “could result in a significant decline in the public trading price of our securities”.

This news followed a more positive announcement last Thursday, when Webull detailed its plan to reintroduce cryptocurrency trading for its global customers. The company is reintegrating its Webull Pay subsidiary and intends to launch crypto trading services in the United States in the third quarter.

Price Action: According to data from Benzinga Pro, BULL shares are trading lower by 7.4% to $15.64 Monday afternoon. The stock has a 52-week high of $79.56 and a 52-week low of $10.18.

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How To Buy BULL Stock

By now you're likely curious about how to participate in the market for Webull – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Webull, which is trading at $16.02 as of publishing time, $100 would buy you 6.24 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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