Castellum stock drops 30% after offering size reduction, price increase, reverse stock split

Cybersecurity and IT service provider Castellum (NYSEMKT:CTM) shares fell 30% after a $3 million public offering, reversed a stock split, and joined NYSE American.

Castellum shares opened on NYSE American at $1.36 after being valued at $2. Recent Stocks changed hands at $1.41 around 11:40 a.m. ET. Company offered 1.5 million sharesraised about 3 million dollars.

Underwriters receive a 45-day call option to purchase up to 225,000 additional shares. EF Hutton is serving as narrator.

Castellum also conducted a 1 to 20 reverse stock split before the offering. Prior to Thursday, the stock was traded OTC with the symbol ONOV.

Castellom’s IPO has been scaled back from the $4 million proposal filed with the SEC on October 11, was subsequently cut from a $13 million transaction proposed in a filing on September 30.

Headquartered in Maryland, Castellum is a provider of IT and cybersecurity software and services, primarily to government agencies. The company posted a 2021 net loss of $8 million on $25 million in revenue.

For more on Castellum, check out Contributor Donovan Jones SA “Castellum Proposed Terms for $13 Million Sign Up.”