TOP Financial Group Ltd (NASDAQ:TOP) shares are trading lower by 35.8% to $3.46 during Monday's session after the company announced a definitive agreement with an investor for the purchase and sale of 2 million ordinary shares along with warrants for the same number of shares.

The purchase price is set at $2.50 per share, totaling approximately $5 million in gross proceeds. The warrants, priced at $2.75, will be exercisable immediately after issuance and will expire three months following the initial exercise date.

The offering is expected to close around February 14, pending customary closing conditions, with Univest Securities, LLC acting as the sole placement agent.

Is TOP A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like TOP Finl Gr's page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. TOP Finl Gr does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 17.85%, you'll need to buy a share of Cornerstone Strategic by the 13th June, 2024. Once done, you can expect to receive a nominal payout of $0.11 on 28th June, 2024.

According to data from Benzinga Pro, TOP has a 52-week high of $256.44 and a 52-week low of $2.63.