Bit Brother Limited, a diversified corporation with operations spanning business management in China and ventures in blockchain and cryptocurrency in the United States, experienced a staggering 78% decline in its shares subsequent to the announcement of a $5.04 million registered direct offering.
At the time of this publication, Bit Brother Ltd stock (BETS) has witnessed a decline.
Bit Brother Ltd
Current Price: $0.10
Change : -0.36
Change (%): (-78.40%)
Volume: 15.9M
Source: Tomorrow Events Market Data
Bit Brother revealed today that it has formalized a securities purchase agreement with select accredited investors to vend $5.04 million worth of its Class A ordinary shares, Class B warrants, and Class C warrants in a registered direct offering.
Per the terms of the securities purchase agreement, Bit Brother will dispense 14,000,000 Class A ordinary shares, along with Class B warrants enabling the purchase of an equivalent number of Class A ordinary shares, and Class C warrants providing a similar purchase option. These assets will be offered at a combined unit price of $0.36 per Class A ordinary share, inclusive of associated warrants. The Class B warrants are immediately exercisable upon issuance, with a five-year term and an initial exercise cost of $0.36. Likewise, the Class C warrants are immediately exercisable upon issuance, with a two-year term and an initial exercise cost of $0.46, subject to a prescribed reset 30 trading days after closure. In addition to the customary cashless exercise rights in both warrant classes, the Class C warrants grant an alternative cashless exercise, affording holders the right to execute, under specific conditions, a larger number of Class A ordinary shares.
It is projected that Bit Brother will amass gross proceeds of approximately $5.04 million before accounting for placement agent fees and other associated offering expenses. The anticipated closure date for the registered direct offering is set for October 30, 2023, contingent upon the fulfillment of standard closing prerequisites.
The offering was exclusively managed by Maxim Group LLC, which served as the sole placement agent.
In conclusion, the sharp decline in Bit Brother shares underscores the impact of the $5.04 million registered direct offering on investor sentiment and market dynamics.
