Vuzix Corporation (NASDAQ: VUZI) stock recently traded at $26.32 which is a 14.19% upward movement. The VUZI stock previously closed at $23.05. However, in the after-hours trading session, VUZI plunged by 12.99% at the time of writing.
The recent negative movement in the stock comes adjacent to the announcement made by Vuzix for proposing of an underwritten public offering of common stock.
Vuzix is a leading supplier of Smart Glasses
Vuzix(VUZI) is a consumer electronics company specifically focusing on Augmented Reality technologies. It is a lead supplier of Smart Glasses that can automatically provide the wearer information on the focused object seen through the Smart Glasses. The glasses can also make facial recognitions, offer a high-quality viewing experience, and provide maps for mobility and wearable augmented display. All of Vuzix’s AR tech products are patented or in the process of being patented which becomes a total of 184.
What could prompt VUZI stock to propose underwritten public offering?
Vuzix Corporation (VUZI) announced today that it is planning to offer its shares of common stock for a sale proposal in the manner of the underwritten public offering. In this offering, the shareholder and investor can exercise the Company –given right to have a 30-day option for purchasing up to an additional 15% of the number of shares. These additional shares will be issued and sold in the same underwritten conditions and terms.
The reason for this proposal is because the company will use the net proceeds for its expansion and operational growth; accelerating production of finished goods, acquisition of firms, R&D, and increasing workforce.
Vuzix received a $250,000 order for M400 Smart Glasses
Vuzix stock was already performing fundamentally strong; its overall outlook for 2021 shows financial and operational stability. This is especially true since the recent development that just came yesterday in the form of an initial smart glasses deployment order. This order came from a Healthcare and surgical training provider which totals an amount of $250,000 for Vuzix M400 Smart Glasses. These smart glasses will be used in the healthcare facility by surgeons, doctors, medical students, medical professors, and medtech experts.
Healthcare industries are usually first to invest and adopt smart technology to enhance their ever-needed health facilities and provision optimum care to the patients. This is why Vuzix can expect to expand the orders of Vuzix M400 for the healthcare and medical training provider in the future.
The path of growth ahead is clear for the Smart Glass supplier
Vuzix stock is already showing a positive pattern due to the popularity of Vuzix M400 in the healthcare market since the past year. The additional stock offering could then suggest that the company is exceeding its initial projection of growth for 2021 and is going big. This is good news for investors even in the long run as Vuzix stock continues to soar.
