China's Datasea sinks on direct stock deal

Datasea Intelligent Technology

20/07/2021 18:56

** Datasea Inc  DTSS.O  shares down 36.3% to $2.81 after
Chinese tech provider announces stock offering
    ** Co sells 2.4 mln shares to certain institutional
investors in direct offering for ~$8.5 mln gross raise
 urn:newsml:reuters.com:*:nGNXc5plnq
    ** Purchase price of $3.48 represents 21% discount to
stock's Mon close
    ** Investors will also receive 0.45 unregistered 2-1/2-yr
warrants to buy an additional share; warrants have exercise
price of $4.48/sh
    ** Co plans to use net proceeds for general corp purposes
and repay debt
    ** DTSS last Weds soared as high as $6.84, before finishing
session up 36% at $3.98, after co said it inked distribution
deal for 5G messaging platform  urn:newsml:reuters.com:*:nL4N2OQ3BQ
    ** Co has ~21.5 mln shares outstanding and ~6.47 mln shares
of free float, per Refinitiv data

 (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))