AXON - Equity Offering?

At first I thought the stock was down today because of pretty large insider selling, which is something I normally don’t worry about. But then I received an email from Simply Wall Street that said AXON has filed a follow-on equity offering, which is more concerning, but I can’t find anything else on it. Can any of our sleuths who are more adept at operating the interwebs uncover this?

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My understanding is that this is not an actual equity offering. Here is the 8-K with all of the details.

I believe this is the company just re-upping its “at-the-market” shelf. In 2021, they issued a shelf where they had the potential to sell 3 million shares over a 3-year period. Well, they only sold 1.1 million of that allotment. So it looks like they are just putting in place another prospectus in order to sell the other 1.9 million shares if they so choose to.

A shelf is essentially just saying “we can do this, but we don’t have to”

And then an “at-the-market” offering is when the company can sell shares over a period rather than all at one-time like a traditional equity offering. So if Axon just wanted to raise a small amount, they could raise $25 million or something in one day through their broker (JPM in this case) with limited impact on the share price.

I could be a little off in the details but that’s my current understanding.

Best,
Fish

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