Here’s Why Aterian Stock Is Crashing | The Motley Fool

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What happened A day after making big gains on renewed short-squeeze momentum, shares of Aterian (NASDAQ:ATER) stock are now plummeting in Thursday's trading. The company's share price was down roughly 18% in the daily session as of 12 p.m. EDT.  The big sell-off appears to be driven by news that the company has reached an agreement with lender High Trail to pay down $66.3 million in debt plus interest on that principal amount. Why would that trigger a sell-off? It's because Aterian is once again turning to sale of new shares as a way to strengthen the balance sheet.  Image source: Getty Images. So what Take a look at the chart below, which tracks Aterian's outstanding share count over the last year and does not include the new shares that will be issued to pay down outstanding debts to High Trail.  ATER Shares Outstanding data by YCharts The company is currently operating at a loss, and it's frequently turned to the sale of new sh
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