HiTek Global Inc. Ltd (HKIT) shares are taking a beating in Wednesday's premarket session, falling more than 21% after the company unveiled an $8 million direct offering. While Nasdaq futures are up 0.21% and S&P 500 futures are down 0.09%, HKIT is moving to its own beat—and it's not a happy one.

$8 Million Direct Offering Details

According to the company's official announcement, HiTek Global entered into a definitive agreement with certain investors for a registered direct offering. The company expects aggregate gross proceeds of approximately $8 million.

The China-based company will sell 4 million Class A ordinary shares (or pre-funded warrants in lieu of shares) along with 4 million warrants at a purchase price of $2.00 per share. Each warrant has an exercise price of $4.5678 and is exercisable for 3.8 Class A ordinary shares.

HiTek Global said the offering is expected to generate about $8 million in gross proceeds before deducting placement agent fees and other expenses. The transaction is expected to close on or about June 3, 2026, subject to customary conditions.

Critical Technical Levels for HKIT Stock

From a trend perspective, HKIT is deeply broken. It's trading 77.8% below its 20-day simple moving average (SMA), 87.4% below its 50-day SMA, 99.6% below its 100-day SMA, and 99.8% below its 200-day SMA. The bearish structure is reinforced by the 20-day SMA sitting below the 50-day SMA, and the death cross (50-day SMA below the 200-day SMA) that occurred in March.

Momentum is extremely stretched, with the relative strength index (RSI) at 22.78—an oversold reading that often signals selling pressure has become crowded, even if it doesn't guarantee an immediate bounce.

• Key Resistance: $2.19 — the 20-day SMA is far overhead and marks the first major trend reclaim level bulls would want back.
• Key Support: 62 cents — the 52-week low zone is the nearest major reference area traders tend to watch for capitulation or a bounce attempt.

HKIT Stock Price Activity: HiTek Global shares were down 21.02% at $0.4897 during premarket trading on Wednesday, according to market data.