China's Bit Brother plunges on stock-and-warrants offering

Bit Brother

16/07/2021 16:57

** Bit Brother  BTB.O  plunges 50% to record low $1.01 on
Fri after Chinese specialty tea products retailer announces
equity raise
    ** BTB, formerly Urban Tea Inc, sells 15 mln shares and
warrants to buy 15 mln shares to certain accredited investors
for $22.5 mln gross raise  urn:newsml:reuters.com:*:nPnc1k4xva
    ** Purchase price of $1.50 for shares and warrants
represents 25% discount to stock's Thurs close
    ** 5-yr warrants have exercise price of $1.50
    ** BTB has ~20.4 mln shares outstanding, per Refinitiv data
    ** Record trading volume of ~24 mln shares so far in session
compares to stock's 10-DMA of ~870k - Refinitiv
    ** Stock on Tues rose 11% to $2.17 after co bought majority
stake in Angelo's Pizza for $12.5 mln, and said the chain
restaurants will begin to accept cryptocurrency as form of
payment  urn:newsml:reuters.com:*:nL4N2OP2SH

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))