DatChat, Inc. Announces Closing of $1.8 Million Underwritten Public Offering of Common Stock
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From a financial perspective, the completion of a public offering is a significant event for a company like DatChat. The raising of approximately $1.8 million in aggregate gross proceeds indicates a strategic move to increase the company's capital. This infusion of funds can be critical for supporting ongoing projects, scaling operations, or improving the company's balance sheet. Investors and analysts should note the offering price of $1.85 per share, which provides a reference point for the company's valuation in the market. The additional 45-day option for underwriters to cover over-allotments suggests a potential for further capital increase if there is enough demand. However, it is also important to scrutinize the impact of such offerings on existing shareholders, as it may lead to share dilution.
Examining the market dynamics, DatChat's focus on secure messaging, social media and the burgeoning metaverse sector may position it favorably in these high-growth areas. The capital raised could enable the company to invest in new technologies or marketing efforts to capture a larger market share. However, the effectiveness of these investments in driving user growth and engagement will be crucial. Investors should monitor the company's user metrics and competitive positioning post-offering to assess the potential return on investment. Additionally, the role of EF Hutton LLC as the sole book-running manager for the offering may influence investor confidence, as their reputation and expertise in managing such transactions are factors considered by the market.
Legally, the offering is conducted under a 'shelf' registration statement, allowing the company to prepare the offering documents in advance and go to market quickly when conditions are favorable. This process is subject to SEC regulations to ensure transparency and protect investors. The statement that this press release does not constitute an offer indicates adherence to legal norms, avoiding potential misinterpretations. Investors should be aware of the legal frameworks governing such offerings and the implications they may have on the company's compliance and reporting requirements going forward.
New Brunswick, NJ, Jan. 19, 2024 (GLOBE NEWSWIRE) -- DatChat, Inc. (Nasdaq: DATS) (“DatChat” or the “Company”), a secure messaging, social media, and metaverse company, today announced the closing of its previously announced underwritten public offering of 972,972 shares of its common stock (or pre-funded warrants in lieu thereof) at a public offering price of
EF Hutton LLC, acted as the sole book-running manager for the Offering.
The securities were offered by the Company pursuant to a "shelf" registration statement on Form S-3 (File No. 333-268058), which was filed with the U.S. Securities and Exchange Commission (“SEC”) on October 28, 2022, as amended on November 18, 2022, and declared effective by the SEC on December 6, 2022, and the accompanying prospectus contained therein.
The Offering was being made only by means of a prospectus supplement and accompanying prospectus. The final prospectus supplement and accompanying base prospectus relating to the securities being offered in the Offering were filed with the SEC on January 18, 2023.
Copies of the prospectus supplement and the accompanying prospectus relating to this Offering may be obtained on the SEC’s website at http://www.sec.gov or by contacting EF Hutton LLC Attention: Syndicate Department, 590 Madison Avenue, 39th Floor, New York, NY 10022, by email at syndicate@efhutton.com, or by telephone at (212) 404-7002.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About DatChat, Inc.
DatChat, Inc. is a secure messaging, metaverse, and social media company that not only focuses on protecting privacy on personal devices, but also protects user information after it is shared with others. The DatChat Messenger & Private Social Network presents technology that allows users to change how long their messages can be viewed before or after users send them, prevents screenshots, and hides encrypted photos in plain sight on camera rolls. DatChat's patented technology offers users a traditional texting experience while providing control and security for their messages. With the DatChat Messenger, a user can decide how long their messages last on a recipient's device, while feeling secure that at any time, they can delete individual messages or entire message threads, making it like the conversation never happened.
Notice Regarding Forward-Looking Statements
The information contained herein includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as "may," "will," "should," "would," "expect," "plan," "believe," "intend," "look forward," and other similar expressions among others. These statements relate to future events or to the Company’s future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to the Company’s operations, results of operations, growth strategy and liquidity. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. Except as may be required by applicable law, The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
ir@datchats.com
800-658-8081
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