DatChat Inc (NASDAQ:DATS) shares are trading lower Wednesday after the company announced a $1.8 million public offering.
What Happened: DatChat has announced the pricing of an underwritten public offering of 972,972 shares of its common stock. The company said it will price the offering at $1.85 per share.
The company also granted the underwriters a 45-day option to purchase up to an additional 145,945 shares at the public offering price.
The offering is expected to close on Jan. 19. DatChat anticipates gross proceeds of approximately $1.8 million.
The news comes after DatChat shares surged more than 51% on Tuesday after the company issued a letter to shareholders and provided a corporate update, noting that it plans to separate DatChat and SmarterVerse into two separate publicly listed companies.
DatChat is a secure messaging, metaverse and social media company that focuses on protecting privacy on personal devices, as well as user information after it is shared with others.
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DATS Price Action: DatChat shares were down 38.7% at $1.95 at the time of writing, according to Benzinga Pro.
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