In a tumultuous week for Bit Brother Ltd, the company’s stock continued its downward spiral on Friday, as investors reacted to the recent announcement of a registered direct offering. The deal, unveiled earlier in the week, involves the sale of $12.0 million worth of Class A ordinary shares, Class D warrants, and Class E warrants to accredited investors. Additionaly, the trading floor witnessed an extraordinary volume, with over 353 million shares changing hands—a stark contrast to the average daily trading volume of 72 million shares.
At the time of this publication, Bit Brother Ltd stock (BETS) has witnessed a decline.
Bit Brother Ltd
Current Price: $0.02
Change : 0.00
Change (%): (-22.28%)
Volume: 353.6M
Source: Tomorrow Events Market Data
The registered direct offering of Bit Brother encompasses a substantial 184,615,385 Class A ordinary shares, accompanied by corresponding Class D and Class E warrants. Notably, all these securities are priced at $0.065 per share, with their respective warrants.
Investors participating in the offering will have the immediate option to exercise Class D warrants for a period of five years at an initial price of $0.06, which may be subject to adjustments after the initial 30-day period. Similarly, Class E warrants can be exercised over a two-year term at an initial price of $0.13. Importantly, both warrant classes offer cashless exercise options, providing investors with flexibility.
To prevent the stock from dropping below $0.01 for five consecutive days, the company and its investors have agreed to implement a reverse split. This strategic move is anticipated to safeguard Bit Brother Ltd from further depreciation in its share value. The company estimates gross proceeds of $12.0 million from the offering, before deducting fees and expenses.
The offering is slated to conclude around December 8, pending the fulfillment of customary conditions. Maxim Group LLC is playing a pivotal role in the process as the sole placement agent.
Bit Brother Ltd’s stock performance paints a grim picture over the past few days and months. The company’s shares have experienced a sharp decline, with a staggering 61.34% drop in the last five days alone. Looking at a broader timeframe, the one-month performance shows a decline of 44.44%, while the three-month and year-to-date figures indicate a severe downturn of 97.55% and 99.86%, respectively. Over the course of the past year, Bit Brother Ltd’s stock has witnessed a staggering 99.78% decrease in value.
Investors and analysts alike are closely monitoring the situation as the company navigates through this challenging period. The registered direct offering, coupled with the reverse split, underscores Bit Brother Ltd’s efforts to secure necessary funding and stabilize its financial position. The market will undoubtedly be watching for further developments and how these strategic maneuvers impact the company’s trajectory in the coming weeks.
