AXT Inc. (NASDAQ:AXTI) shares were trading higher but have since reversed and began trading lower after the company announced it priced its $87 million public offering of 7,098,492 shares at $12.25 per share.



AXT stock is among today’s weakest performers. What’s behind AXTI decline?



What To Know: AXT said the offering is expected to generate gross proceeds of approximately $87 million before underwriting discounts, commissions and other offering expenses. 



The company said it plans to use the net proceeds primarily to increase manufacturing capacity at its subsidiary, Beijing Tongmei Xtal Technology Co., Ltd., to support production of indium phosphide substrates for export. Additional uses include research and development of new or improved products, as well as general corporate and working capital purposes.



See Also: Target Shares Take A Breather Following Activist-Sparked Rally



AXT Price Action: At the time of writing, AXT shares are trading 3.45% lower at $14.84, according to data from Benzinga Pro.



This illustration was generated using artificial intelligence via Midjourney.

AXTI

AXT Inc. (NASDAQ:AXTI) shares initially rose but later fell after announcing a public offering of 7,098,492 shares at $12.25 each, totaling $87 million. The proceeds will primarily enhance manufacturing capacity at its subsidiary in Beijing and support R&D for new products. Currently, AXT shares are down 3.45% at $14.84.

What's Going On With AXT Stock Monday?