Venu Holding Corporation has launched an underwritten public offering of 18.75 million common shares and pre-funded warrants priced at $4.00 per share, targeting $75 million in proceeds. Investors also receive warrants exercisable at $5.00 per share over five years, and underwriters hold a 45-day option to purchase up to 2.8125 million additional shares.

If the underwriters’ option is fully exercised, total share count could rise by more than 21.56 million, increasing potential dilution and exerting short-term downward pressure on earnings per share as the company absorbs new capital.

Following the offering announcement, Venu Holding shares plunged 24.6% in premarket trading to a 52-week low, extending a 49.2% decline over the past year. The stock trades 33.2% below its 20-day simple moving average and 67.3% below its 200-day moving average.

Technical readings show an RSI of 33.94, nearing oversold territory, alongside a bullish MACD crossover. Venu is set to report Q1 results on March 30, with consensus estimating a $0.29 per-share loss on $4.58 million revenue, and analysts maintain a Strong Buy rating with an average $15.00 price target.