Shares of Superconductor Technologies Inc. plummeted 31% in premarket trade Friday, after the maker of superconducting wires announced a public stock offering that would essentially triple its shares outstanding. The company said it raised $10.2 million as it priced the stock offering at $1.50 a share, implying a sale of 6.8 million shares. The company had about 3.1 million shares outstanding as of Oct. 1, according to the company's third-quarter report. The pricing represented a 26% discount to Thursday's closing price of $2.02. The company said that with each share of common stock sold, it included one five-year warrant to buy one share of stock at $2.00. The company plans to use the proceeds from the offering for working capital and general corporate purposes. The stock had tumbled 36% year to date through Thursday, while the S&P 500 has gained 9.9%.
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