Rubico's stock price plummeted 19% due to dilution from a share issuance.

2026-02-20 18:37:20

Investing.com - Rubico Inc stock dropped 19.6% in pre-market trading on Friday after the company disclosed a large-scale equity sale transaction that will increase its outstanding shares by more than seven times.

According to a Form 6-K filing, the company sold 3,492,273 common shares on Wednesday under an existing equity credit facility with B. Riley Principal Capital II, LLC. These shares have a par value of $0.01 each.

This transaction increased Rubico’s outstanding common shares from 567,651 as of today to 4,059,924. The sale resulted in approximately a 615% increase in total shares outstanding.

Rubico executed this sale through the previously established equity credit facility arrangement with B. Riley Principal Capital II, LLC. The filing did not disclose the per-share price or total proceeds from the transaction.

The sharp decline in pre-market reflects investor concerns over the significant dilution effect this equity issuance will have on existing shareholders.

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