Shares of Nano-X Imaging (NASDAQ: NNOX), or simply Nanox, plummeted early on Tuesday morning. That’s because the company filed with the Securities and Exchange Commission (SEC) late yesterday afternoon, telling shareholders that some insiders are cashing out. At one point, Nanox stock was down almost 9%.
However, some eagle-eyed investors spotted some new information buried in the SEC filing that they believe is very good news for Nanox’s business. As a result, its stock was up 13% as of 3:15 p.m. EST.
First, let’s address the stock offering. According to Nanox, it’s not getting any of the proceeds from the sale. Rather, the proceeds go entirely to the selling stakeholders. Therefore, this is a nondilutive stock offering, which is good. However, it never feels good when early investors want to take profits now.