Blue Hat announced the pricing of its public offering of 32 million units last week, at a price of $0.2 per unit.
- The Blue Hat offering was expected to close on Monday, with the company stating that buyers will receive one warrant per share, expiring one year from the date of issue.
- Each unit consists of one ordinary share of the company and one warrant, initially exercisable for one ordinary share.
- The company said it intends to use the proceeds of the offering to meet its working capital requirements and for other general corporate purposes.
Blue Hat Interactive Entertainment Technology (BHAT) shares were up by more than 40% in Tuesday’s pre-market trade, a day after the company released its prospectus for a $6.4 million public offering.
Blue Hat announced the pricing of its public offering of 32 million units last week, at a price of $0.2 per unit. Each unit consists of one ordinary share of the company and one warrant, initially exercisable for one ordinary share.
Retail sentiment on Stocktwits around Blue Hat Entertainment trended in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels at the time of writing.
What Is Blue Hat Offering?
The Blue Hat offering was expected to close on Monday, with the company stating that buyers will receive one warrant per share, expiring one year from the date of issue.
The company said it intends to use the proceeds of the offering to meet its working capital requirements and for other general corporate purposes. However, it added that its management will retain broad discretion over the allocation of the net proceeds from this offering.
What Does Blue Hat Do?
Blue Hat is a Cayman Islands-based company that does not do any business on its own. However, it is a holding company that conducts a majority of its operations through its subsidiaries in China and Hong Kong.
The company highlighted that its recent transition, from 2023 to 2024, to focus on gold and diamond trading and supply chain operations, represents a significant departure from its previous business model.
Blue Hat also stated that the highly competitive gold and diamond trading business is another risk for its operations.
How Did Stocktwits Users React?
One user cautioned that there is a likelihood that warrants will be repriced lower.
Another bullish user said that the stock is “massively undervalued.”
BHAT stock is down 94% year-to-date and 99% over the past 12 months.
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