Versus Systems Announces Strategic Investment From Cronus Equity Capital Group, LLC; The Investment Contemplates The Issuance Of Up To 24,727,361 Shares Of Versus To CECG Representing ~51% Of The Co's Issued And Outstanding Shares
Portfolio Pulse from Benzinga Newsdesk
Versus Systems Inc. (NASDAQ:VS) has received a strategic investment from Cronus Equity Capital Group, LLC (CECG), which will result in CECG acquiring up to 51% of Versus' issued and outstanding shares. The investment includes two tranches: the first, already completed, involved the issuance of 15,838,441 shares, and the second, expected next week, will add 8,888,920 shares, both at a premium to the recent average closing price.
November 24, 2023 | 1:32 pm
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Versus Systems Inc. has secured a strategic investment from CECG, with the issuance of shares representing a 51% ownership stake. The investment was made at a premium to the recent average closing price, indicating a positive valuation of the company.
The strategic investment by CECG in Versus Systems represents a significant ownership stake, indicating a strong vote of confidence in the company's future. The fact that the shares were issued at a premium to the market price suggests a positive outlook on the company's valuation, which could lead to increased investor interest and potentially a short-term rise in the stock price. However, the dilution effect of issuing new shares could temper the stock price increase.
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