Why Datasea Stock Hit A New All-Time Low Today
Portfolio Pulse from Henry Khederian
Datasea Inc (NASDAQ:DTSS) shares dropped by 38.3% to $0.40 after the company announced an underwritten public offering of 5 million shares at $0.40 per share, aiming to raise approximately $2.0 million. The company also granted underwriters a 45-day option to purchase up to an additional 750,000 shares at the same price. The offering is expected to close on September 13.
September 12, 2023 | 2:00 pm
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Datasea's stock price has fallen significantly due to the announcement of a public offering at a price lower than the current trading price. This could dilute existing shareholders' equity.
The announcement of a public offering at a price lower than the current trading price often leads to a drop in the stock price as it indicates a potential dilution of existing shareholders' equity. In this case, Datasea's stock price has fallen by 38.3% following the announcement.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100