Why Datasea (DTSS) Shares Are Volatile During Tuesday's Session
Portfolio Pulse from Henry Khederian
Datasea Inc (NASDAQ:DTSS) shares dropped by 27.1% to $3.60 after announcing a $2.25 million registered direct offering of 692,307 shares at $3.25 per share. The offering is expected to close around July 3, with funds allocated for R&D, market expansion, and general corporate purposes. EF Hutton LLC is the exclusive placement agent.
July 02, 2024 | 4:41 pm
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Datasea Inc shares fell 27.1% to $3.60 after announcing a $2.25 million registered direct offering at $3.25 per share. The offering is expected to close around July 3, with funds allocated for R&D, market expansion, and general corporate purposes.
The significant drop in share price is a direct reaction to the announcement of the direct offering at a price lower than the current trading price. This dilution effect typically leads to a negative short-term impact on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100