DatChat, Inc. Announces Pricing Of $1.8M Underwritten Public Offering Of 972,972 Shares Of Common Stock At A Price Of $1.85/Share
Portfolio Pulse from Benzinga Newsdesk
DatChat, Inc. (NASDAQ:DATS) has announced the pricing of an underwritten public offering of 972,972 shares at $1.85 per share, aiming to raise approximately $1.8 million. The offering includes an option for underwriters to purchase an additional 145,945 shares to cover over-allotments. EF Hutton LLC is the sole book-runner, and the offering is expected to close on January 19, 2024. The shares are offered under a shelf registration statement declared effective by the SEC on December 6, 2022.
January 17, 2024 | 1:06 pm
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DatChat, Inc. is raising funds through a public offering of shares at a price of $1.85, which may dilute current shareholders but provide capital for the company's operations and growth.
The public offering of shares typically leads to dilution of existing shareholders' equity, which can result in a negative short-term impact on the stock price. However, the raised capital may be used for growth, which could be positive in the long term. The confidence level is high due to the direct correlation between share offerings and stock price movements, but not at 100% as market conditions and investor sentiment can also influence the outcome.
CONFIDENCE 90
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RELEVANCE 100