Why DatChat Stock Is Tumbling Today
Portfolio Pulse from Adam Eckert
DatChat Inc (NASDAQ:DATS) shares dropped after announcing a $1.8 million public offering priced at $1.85 per share. The offering includes an option for underwriters to buy additional shares and is expected to close on Jan. 19. This follows a 51% surge in DATS shares after a corporate update and plans to split DatChat and SmarterVerse into two entities. The stock was trading down 38.7% at $1.95.
January 17, 2024 | 2:24 pm
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DatChat's stock price fell sharply after the company announced a public offering at $1.85 per share, which is expected to dilute the value of existing shares.
The sharp decline in DatChat's stock price is likely due to investor concerns about share dilution from the public offering. The offering price is also below the recent trading price, which can be seen as a negative signal about the company's valuation. The recent surge in stock price due to the corporate update may have been overshadowed by this new development.
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