BTC Digital Ltd. (NASDAQ:BTCT), a company specializing in blockchain technology, experienced a significant drop in its stock price, falling 39% to $9.90 on Friday morning. This decline followed the announcement of a public offering of common stock priced at $8.00 per share, a substantial decrease from Thursday's closing price of $15.66.
The company disclosed the details of its underwritten public offering, aiming to raise approximately $20 million before accounting for underwriting fees and other related expenses. The offering includes 2,500,000 Ordinary Shares and Pre-Funded Warrants, with each Pre-Funded Warrant priced at $7.999, just one-thousandth of a dollar below the Ordinary Share price, reflecting the warrant's nearly immediate exercisability.
Furthermore, BTC Digital Ltd. has granted Aegis Capital Corp., the sole book-running manager for the offering, a 45-day option to purchase up to an additional 15% of the Ordinary Shares sold to manage over-allotments, if necessary.
The transaction is anticipated to conclude around December 9, 2024, contingent on customary closing conditions being met. BTC Digital Ltd. intends to allocate the net proceeds from the offering to general corporate purposes and to supplement working capital.
The offering's pricing has evidently affected investor sentiment, as reflected in the stock's sharp decline. Aegis Capital Corp. is overseeing the offering process, with VCL Law LLP and Kaufman & Canoles, P.C. providing legal counsel to BTC Digital Ltd. and Aegis Capital Corp., respectively.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.