Shares of Super Micro Computer (SMCI) extended their decline early Monday after reports indicated the server maker is seeking to strengthen its finances by raising new capital.
According to a Bloomberg report on Friday, citing sources familiar with the matter, Super Micro has hired investment bank Evercore and is considering issuing more shares or bonds. The company did not respond immediately to a request for comment outside of normal business hours.
The stock, which dropped more than 17% last week, has been volatile in 2024. Despite an internal investigation finding no evidence of wrongdoing related to the delayed earnings filing, Super Micro has yet to submit its financial statements to the Securities and Exchange Commission (SEC). The company has been granted an extension until February 25, preventing an immediate risk of delisting from Nasdaq.
Earlier this year, Super Micro shares hit an all-time closing high of $119 in mid-March, but later plummeted to as low as $18. The company recently hired a new auditor after Ernst & Young resigned, citing concerns about its financial statements.
Shares dropped 7.5% when the market opened on Monday, falling to $33.73, bringing their losses over the past five days to 24%. Despite this, the stock is still up 19% year-to-date and has gained nearly 60% over the past month.
Due to its smaller market value, the company was removed from the Nasdaq 100, an index tracking the largest non-financial companies on the exchange.
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