Having tumbled last week, GoPro Inc (NASDAQ:GPRO)’s shares recorded another decline at the end of trading session on Monday, 10th November, 2014. This is attributed to the announcement made by the company that it would be making a public offering of 800 million shares of which 100 million will be raised in-house while the remaining 700 million will be accrued through shareholders. On CNBC, this news was covered by Kate Rogers and it triggered a debate as to whether the stock should be left alone or should it be bought.
An avid surfer, Nicholas Woodman, GoPro Inc (NASDAQ:GPRO)’s CEO explained this decision as intended to fulfill two objectives namely to raises the finance necessary for upgrading and secondly to indulge in acquisitions and mergers in the near future. The adventurous CEO hopes that it will also provide the company with an opportunity to govern its shares’ entry into the market, especially since the lock-up period tied to its IPO is drawing to a close.
Given that the CEO himself will be participating in this exercise, doubts began to form as regards his future with the company. However, he was quick to put rumors to rest by offering the following clarification –
“I plan to sell a portion of my holdings in GoPro, but no one should misunderstand my commitment to the company or our vision. As I told investors on our earnings call last week, I plan to be a significant shareholder in GoPro for a long time. I’m a huge believer in our vision and our ability to realize it.”
Mr. Nicholas Woodman had rendered GoPro Inc (NASDAQ:GPRO) the center of the storm when he donated 5.8 million shares to a charity foundation and the controversy generated had caused share prices to plunge. After yesterday’s news the price plunged again with value having lowered by 3.5% and closing at $76.25.
There is a silver streak too and it is in keeping with GoPro Inc (NASDAQ:GPRO)’s sense of adventure. A camera was mounted on a cheerleader’s head and her vision, on being tossed into air, was recorded for everyone to experience.
This article has been written by Vinita Basu.