United Education & Software said it is shelving a public offering of 1 million shares of new common stock because of the big drop in the company's stock price after the fall in the stock market last month.
The Encino trade-school operator planned to sell the stock at a maximum of $15.625 a share. On Monday, however, its stock closed at $10.75.
In addition to the 1 million shares offered by the company, another 409,126 shares were to have been offered publicly by StanChart Equities, an affiliate of Union Bank.
Those shares represent warrants held by StanChart Equities that it received for loaning United Education $13.5 million. StanChart had planned to convert the warrants into stock at $5 a share.