Actelis Networks Inc (NASDAQ:ASNS) shares are trading lower by 14.3% to $1.98 during Monday's session after the company announced a $2.25 million capital raise through warrant exercise and new warrants issuance.

What Happened?

Actelis announced a definitive agreement for the immediate exercise of certain Series A-2 warrants to purchase up to 999,670 shares of common stock at $2.00 per share, originally issued in June 2024. The exercise is expected to generate approximately $2.25 million in gross proceeds for the company.

In return for the immediate exercise, Actelis will issue new unregistered warrants to purchase up to 1,999,340 shares of common stock at $1.75 per share. These new warrants will be exercisable immediately and will have a term of 24 months from issuance.

The offering is expected to close around July 2, pending customary closing conditions. The net proceeds will be used as working capital for general corporate purposes.

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Should I Sell My ASNS Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of Actelis Networks have decreased by 36.23% in the past year. An investor who bought shares of Actelis Networks at the beginning of the year would make a profit of $0.77 per share if they sold it today. The stock has risen 311.54% over the past month, meaning an investor who bought shares on Jun. 1 would see a capital gain of $1.46.

Actelis Networks shares have an all-time high of $24.0, representing 1146.11% upside from current levels.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Actelis Networks stock currently has an RSI of 75.32, indicating overbought conditions.

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ASNS has a 52-week high of $4.60 and a 52-week low of $0.36.