VisionSys (VSA) Plunge 81.54% as Dilutive Capital Raise Triggers Sell-Off, Solana Ties Weigh

The share price of VisionSys (VSA) fell to a record low on November 13, with an intraday decline of 81.54%, marking the steepest drop since January 2025. The stock has now lost 88.35% of its value over five days, following the announcement of a dilutive capital raise.

The decline was triggered by VisionSys's registered direct offering of 9.23 million American Depositary Shares and warrants, priced at $1.30 each, expected to raise $12 million. The offering includes warrants with reset prices as low as $0.65 and a zero-cash exercise option, which could lead to further dilution. Investors criticized the lack of transparency regarding the funds' allocation, exacerbating concerns over the company's financial strategy.

Compounding the sell-off was the company's October announcement of a $2 billion Solana treasury initiative, which had previously caused a 40% stock drop. No progress has been reported on acquiring Solana assets, eroding investor confidence. Leadership instability, including the resignation of the chairman in October, has also raised governance concerns. Meanwhile, Solana's recent 6% decline further weighed on the stock, as the company's strategy remains dependent on the cryptocurrency's performance.

Analysts note that the offering signals financial distress, with the stock trading at a 77% discount to the offering price. The market's reaction reflects a loss of trust in VisionSys's ability to execute its plans, particularly after repeated rebranding efforts and failed initiatives. Without clear operational progress or governance improvements, the stock faces continued pressure, with investors wary of future dilution and uncertain strategic direction.