Datasea Announces Closing of $2.25 Million Registered Direct Offering

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Datasea (NASDAQ: DTSS) has successfully closed a $2.25 million registered direct offering, selling 692,308 shares of common stock at $3.25 per share. The proceeds will be used for research and development, market development, and general corporate purposes. EF Hutton acted as the exclusive placement agent for the offering. The securities were offered under a shelf registration statement on Form S-3, effective as of July 21, 2023. Additional information can be found on the SEC's website.

  • $2.25 million in proceeds secured for R&D and market development.
  • Successful collaboration with EF Hutton as exclusive placement agent.
  • Shares priced at $3.25 each, reflecting investor confidence.
  • Potential shareholder dilution due to the issuance of 692,308 new shares.

The recent registered direct offering by Datasea Inc. involves the sale of 692,308 shares at $3.25 per share, totaling $2.25 million. This infusion of capital is targeted at research and development, market growth and general corporate purposes.

From a financial perspective, this move could be seen as a mix of positive and negative signals. On the plus side, raising additional funds helps Datasea advance its R&D efforts and market presence, potentially driving long-term growth. This can be particularly important for a tech company focused on 5G and AI, as these areas require significant investment to stay competitive.

However, issuing new shares can be dilutive to existing shareholders, meaning that their ownership percentage in the company decreases. Moreover, the offering price of $3.25 per share needs to be considered in light of the current trading price. If the shares were issued at a discount, it could indicate the company’s need for immediate liquidity, which might concern some investors.

In summary, while the additional funds could enhance Datasea's strategic initiatives, the potential dilution and the urgency for cash are aspects that need to be carefully weighed by investors.

Datasea Inc. has positioned itself within the high-growth sectors of intelligent acoustics and 5G-AI multimodal communication technology. The recent capital raise of $2.25 million is a strategic move to bolster its R&D and market development. From a market perspective, this fundraising reflects the company's intent to solidify its foothold and possibly expand its technological capabilities.

Tech firms often require substantial investment in R&D to innovate and stay ahead of competitors. In the highly competitive fields of 5G and AI, being able to fund continuous development is vital. This move could potentially lead to new products and services that could capture significant market share.

However, market perception is important here. Investors will be keen to see how effectively Datasea utilizes these funds. The goal should be to translate R&D efforts into tangible market offerings that boost revenue and profitability. If successful, this could drive the company's growth and enhance shareholder value. On the downside, there is always a risk that the investments may not yield the expected returns, which could negatively impact investor sentiment.

Overall, the market reaction will hinge on Datasea's ability to deliver on its promises and demonstrate the value of its investments in the near to mid-term future.

BEIJING, July 3, 2024 /PRNewswire/ -- Datasea Inc., (NASDAQ: DTSS) ("Datasea" or the "Company"), a Nevada corporation engaged in innovative businesses in high-tech intelligent acoustics and 5G-Artificial Intelligence ("AI") multimodal communication technology in the United States and China, today announced the closing of its previously announced registered direct offering with a certain institutional investor, pursuant to which the Company sold 692,308 shares of its common stock (or common stock equivalents in lieu thereof) at an offering price of $3.25 per share of common stock (or common stock equivalents in lieu thereof) in a registered direct offering.

Datasea intends to use the net proceeds from the offering for research and development, market development and for general corporate purposes.

EF Hutton LLC acted as the exclusive placement agent for the offering.

The securities described above were offered by the Company pursuant to a shelf registration statement on Form S-3 (File No. 333-272889), which was declared effective by the Securities and Exchange Commission ("SEC") on July 21, 2023, and the accompanying prospectus contained therein.  A final prospectus supplement containing additional information relating to the offering was filed with the SEC. Copies of the prospectus supplement and the accompanying prospectus relating to this offering may be obtained on the SEC's website at or by contacting EF Hutton LLC Attention: Syndicate Department, 590 Madison Avenue, 39th Floor, New York, NY 10022, by email at, or by telephone at (212) 404-7002.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the offering, 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 Datasea Inc.

Datasea Inc. is a leading provider of products, services, and solutions for enterprise and retail customers in innovative industries, Intelligent Acoustics and 5G multimodal communication, especially focusing on ultrasonic, infrasound and directional sound technology. The Company's advanced R&D technology serves as the core infrastructure and backbone for its products. Its 5G multimodal communication segment operates on a cloud platform based on AI. Datasea leverages cutting-edge technologies in intelligent acoustics, utilizing ultrasonic sterilization to combat viruses and prevent human infections, and is also developing innovations in directional sound and medical ultrasonic cosmetology. In July 2023, Datasea established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware, in a strategic move to mark its global presence. This underlies Datasea's commitment to Intelligent Acoustics and its intent to offer leading edge acoustic solutions to the US market. For additional information, please visit:

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, without limitation, the   expected use of proceeds from the offering.  These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook," "objective" and similar terms. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and which are beyond Datasea's control, which may cause Datasea's actual results, performance or achievements  (including the RMB/USD value of its anticipated benefit to Datasea as described herein) to differ materially and in an adverse manner from anticipated results contained or implied in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in Datasea's filings with the SEC, which are available at Datasea does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

Investor and Media Contact: 

Datasea Inc. Investor relations

Precept Investor Relations LLC

David Rudnick
+1 646-694-8538


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SOURCE Datasea Inc.


What was the size of Datasea's recent registered direct offering?

Datasea's recent registered direct offering was $2.25 million.

How many shares were sold in the Datasea registered direct offering?

Datasea sold 692,308 shares of common stock in the offering.

What was the offering price for Datasea's registered direct offering?

The offering price was $3.25 per share.

What are the intended uses for the proceeds from Datasea's offering?

The proceeds will be used for research and development, market development, and general corporate purposes.

Who acted as the placement agent for Datasea's offering?

EF Hutton acted as the exclusive placement agent.

Under which SEC form was Datasea's offering registered?

The offering was registered under Form S-3.

When did the SEC declare Datasea's shelf registration statement effective?

The SEC declared it effective on July 21, 2023.

Datasea Inc.


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