Shares of Future FinTech Group (NASDAQ: FTFT) were soaring on Tuesday after the company announced it’s raising money by selling stock. This is seen as good news since the company was running low on funds. As of noon EST today, the stock was up 16%.
According to the press release, Future FinTech is selling 3 million shares to institutional investors for $5 per share. The offering is expected to close tomorrow and will gross the company $15 million, though it didn’t say what net proceeds would be after covering fees. But one thing’s for sure: Future FinTech needs the money. Its most recent quarterly report showed it had less than $1 million on its balance sheet and a mere $43,657 in quarterly revenue. And the report noted a “going concern” with the business: legalese meaning it could fail to meet its financial obligations.