Bit Brother Limited, a multinational corporation with interests in business management in China and ventures in blockchain and cryptocurrency in the United States, saw a continued decline in its stock value after the announcement of a $5.04 million registered direct offering on Thursday.
At the time of this publication, Bit Brother Ltd stock (BETS) has witnessed a decline.
Bit Brother Ltd
Current Price: $0.07
Change : -0.03
Change (%): (-29.86%)
Volume: 53.6M
Source: Tomorrow Events Market Data
Under the terms of the securities purchase agreement, Bit Brother is set to distribute 14,000,000 Class A ordinary shares, along with Class B warrants allowing the purchase of an equivalent number of Class A ordinary shares, and Class C warrants providing a similar purchase option. These assets will be available at a bundled unit price of $0.36 per Class A ordinary share, inclusive of associated warrants. The Class B warrants will be immediately exercisable upon issuance, featuring a five-year term and an initial exercise cost of $0.36. Similarly, the Class C warrants will be immediately exercisable upon issuance, with a two-year term and an initial exercise cost of $0.46, subject to a predefined reset 30 trading days after closure. Besides the customary cashless exercise rights in both warrant classes, the Class C warrants offer an alternative cashless exercise, granting holders the right to execute, under specific conditions, a larger number of Class A ordinary shares.
Bit Brother formally confirmed 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.
It is estimated that Bit Brother will accumulate gross proceeds of approximately $5.04 million, not factoring in placement agent fees and other associated offering expenses. The projected closure date for the registered direct offering is slated for October 30, 2023, contingent upon the fulfillment of standard closing prerequisites.
Investors are closely watching stock performance of Bit Brother as the company navigates this significant financial maneuver. The registered direct offering represents a strategic move to fortify the corporation’s capital base and pursue its diverse interests in both Chinese business management and the burgeoning blockchain and cryptocurrency sectors in the United States.
