Why BrainChip, Regis Resources, Whitehaven, & Zip shares are tumbling lower

Regis Resources Limited (ASX:RRL) and Zip Co Ltd (ASX:Z1P) shares are two of four tumbling lower on Thursday…

After a poor start to the day, the S&P/ASX 200 Index (ASX: XJO) is back on form this afternoon. At the time of writing, the benchmark index is up 0.65% to 7,064.6 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are tumbling:

A stock market chart on a red background with an arrow going down, indicating a falling share price.

Image source: Getty Images

Brainchip Holdings Ltd (ASX: BRN)

The BrainChip share price is down 8% to 58.5 cents. This appears to have been driven by profit taking after a very strong gain on Wednesday. Investors were buying the artificial intelligence technology company's shares after it revealed that Taiwan Semiconductor Manufacturing Company has started volume manufacturing of its Akida AKD1000 neuromorphic processor chip for edge AI devices.

Regis Resources Limited (ASX: RRL)

The Regis Resources share price has crashed 14.5% lower to $2.71. Investors have been selling the gold miner's shares after it announced an agreement to acquire a 30% interest in the Tropicana Gold Project for $903 million from IGO Ltd (ASX: IGO). To fund the acquisition, Regis has raised $494 million from institutional investors at a 14.8% discount of $2.70 per share. It will now seek to raise a further $156 million via the fully underwritten retail component of the entitlement offer.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price has sunk 14% to $1.58. This follows the release of a production and guidance update this morning. That update revealed that the coal miner's production has been impacted by poor weather conditions and geological challenges. As a result, Whitehaven has downgraded its FY 2021 managed ROM production at the Narrabri mine. Rather than the previous 5.3Mt to 5.5Mt guidance, the company now expects 4.5Mt to 4.9Mt.

Zip Co Ltd (ASX: Z1P)

The Zip Co share price has fallen 3% to $9.35. This follows the completion of its $400 million zero coupon senior unsecured convertible notes offering. These notes are convertible into fully paid ordinary shares of Zip at an initial conversion price of $12.39 per share. This represents a conversion premium of 29% over its last close price. The funds will be used to support the active pursuit of both core and international growth opportunities.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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