DatChat (NASDAQ:DATS) stock is falling hard on Wednesday after the company announced a proposed public offering for its shares.
That public offering has DatChat selling 972,972 shares of DATS stock for $1.85 per share. It also includes a 45-day option for underwriters to acquire another 145,945 shares of its stock at the offering price.
DatChat is expecting gross proceeds of $1.8 million from the stock offering before discounts and other offering expenses. Investors will also note that EF Hutton LLC is serving as the sole book-runner for the stock offering.
What This Means for DATS Stock
A public stock offering means that DatChat is increasing its total number of outstanding shares. Doing so dilutes the stakes of current investors in the company. That’s one reason why shares of DATS stock are falling today.
To go along with that, the public offering price likely isn’t being received well by investors. $1.85 per share is a significant discount over its prior closing price of $3.18 per share. With that pricing, it makes sense that the stock would drop closer to the offering price.
DATS stock is down 37.1% as of Wednesday morning as some 420,000 shares change hands. For comparison, the company’s daily average trading volume is about 399,000 shares.
Investors looking for even more of the latest stock market stories will want to stick around!
We have all of the hottest stock market news that traders need to know about on Wednesday! That includes everything happening with shares of Phunware (NASDAQ:PHUN) stock, RiskOn International (NASDAQ:ROI) stock and Meta Materials (NASDAQ:MMAT) stock this morning. You can find out more on these matters below!
More Stock Market News for Wednesday
- Why Is Phunware (PHUN) Stock Down 61% Today?
- Why Is RiskOn International (ROI) Stock Up 15% Today?
- Why Is Meta Materials (MMAT) Stock Up 38% Today?
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
