It is said that General Steel Holdings Inc. fell in New York trading after the Beijing-based steelmaker would raise about $25 million in a sale of shares and warrants.
General Steel dropped $1.22, or 21 percent, to $4.57 at 1:05 p.m. in New York Stock Exchange trading. The shares have risen 16 percent this year.
The company earlier today announced plans to sell 5.56 million shares and warrants to purchase as many as 2.78 million additional shares. The funds will be used for “general corporate purposes which may include working capital, capital expenditures, acquisitions of new businesses and investments.”
General Steel said in a statement April 8 it was starting discussions with a “potential target.” The company’s goal is to become a major steel producer in China, Amit Dayal, a New- York based analyst with Rodman & Renshaw Inc., said in an April interview.
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