Reasons why stocks are pouring out today

stock Opentoor Technologies (open -25.20%))The leading online home flipper has fallen today after saying that the company is re -financing and in charge of new debt. This seems to confirm that the company is having difficulty changing profitability, as the company saw in the first quarter.

At 1:57 pm, the stock price fell 18.9%.

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Opendoor adds new debt

The company said that it is refinated with a note scheduled for 2030 and $ 225.8 million in 2026 notes with an interest rate of 7%. In addition, a new debt is increasing to an additional 7%of $ 79.2 million.

The conversion price will be $ 1.57 per share, which will be 80% premium for yesterday’s finish, which can be converted to a $ 1.57 price, but the debt holder means that the price of the OpendOor can be shifted. This transition will lead to a significant dilution to Opendoor because its market cap is only $ 55.8 million.

It means for Opendoor

Debt refinancing is not necessarily bad for Opendoor because it provides more financial flexibility and capital and promotes debt repayment in 2026.

However, the company is operating in a weak financial state, and it is not possible to generate profits so far and considering the weaknesses of the housing market, the profitable future seems to be getting farther.

The company finished the first quarter with cash of $ 555 million, and in the fourth quarter, the cash flow lost $ 666 million, and the cash burn fee was considerable. Despite the low price, stocks can be easily directed.