Joby Aviation (JOBY) Loses 16.68% on Fresh Billion-Dollar Fundraising Initiative

We recently published 10 Stock Titans With Massive Losses. Joby Aviation Inc. (NYSE:JOBY) was one of the worst performers on Thursday.

Joby Aviation declined by 16.68 percent on Thursday to close at $11.14 apiece as investors digested the potential dilution of existing shares following plans to raise  $1.38 billion in fresh funds from the issuance of convertible senior notes and new stocks.

In a statement, Joby Aviation Inc. (NYSE:JOBY) said that it plans to offer $690 million from the issuance of convertible senior notes due 2032, including a 30-day option to purchase up to an additional $90 million.

Another $690 million is expected to be raised from the sale of 60.79 million new shares to the public, including an overallotment option of more than 7.9 million shares.

The notes have a yield rate of 0.75 percent per annum, payable twice a year on the 15^th of February and August of every year until its maturity date in February 2032.

Noteholders would have an option to either redeem or convert their notes. If converted into shares, the conversion rate would be 70.4846 common shares for every $1,000 worth of notes.

Joby Aviation Inc. (NYSE:JOBY) said that proceeds from the offer will be used to fund its certification and manufacturing efforts and prepare for commercial operations, while the remainder will be used for working capital and other general corporate purposes.

Earlier this month, Joby Aviation Inc. (NYSE:JOBY) announced plans to expand its manufacturing footprint with the recent acquisition of its second facility in Ohio. The new site would support its plans to produce four electric air taxis per month beginning 2027.

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Disclosure: None. This article is originally published at Insider Monkey.