Shares of Pagaya Technologies (NASDAQ:PGY) nosedived 23.7% on Thursday, falling to $9.50, marking their lowest level since May 1.
The Israeli-based fintech company is facing its largest daily percentage drop since March 14 as it seeks to raise capital through a $125 million private offering of five-year exchangeable notes.
In a statement late Wednesday, Pagaya announced that it may settle exchanges of the notes by paying or delivering cash, its Class A shares, or a combination of both.
The company intends to use the net proceeds from the offering to repay borrowings under repurchase agreements, cover general corporate purposes, and pay related fees and expenses.
With approximately 71.8 million shares outstanding, Pagaya's market capitalization now sits at around $682 million, according to LSEG data.
Trading activity surged on Thursday, with about 7 million shares changing hands compared to the stock's 10-day moving average of roughly 1 million.
Together with Thursday's sharp decline, Pagaya is down approximately 43% year-to-date.