Why Crypto-Related Stock Bit Brother Is Down 50% Today
Portfolio Pulse from Henry Khederian
Bit Brother Ltd (NASDAQ:BETS) stock plummeted by 55% after announcing a registered direct offering of $12.0 million worth of Class A ordinary shares and warrants. The offering includes 184,615,385 Class A shares and associated Class D and E warrants at $0.065 per share/warrant. Class D warrants are exercisable at $0.06 and Class E at $0.13, both with cashless exercise options. A reverse split is planned to prevent the stock from falling below $0.01. The offering is expected to close around December 8, with Maxim Group LLC as the placement agent. Bit Brother's 52-week range is $0.021 to $0.66.
December 05, 2023 | 8:00 pm
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Bit Brother Ltd's stock price has significantly dropped due to the announcement of a direct offering, which dilutes current shareholders and introduces a reverse stock split to maintain compliance with minimum price requirements.
The direct offering dilutes the value of existing shares, leading to a negative perception among investors and a sharp decline in stock price. The reverse split indicates the company is trying to avoid delisting, which can further erode investor confidence.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100