Datasea Announces Pricing of $2.25 Million Registered Direct Offering

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Datasea (NASDAQ: DTSS) has entered into a share purchase agreement with an institutional investor to raise $2.25 million through a registered direct offering. The company will issue 692,308 shares of its common stock at $3.25 per share. The offering is anticipated to close by July 3, 2024, contingent on customary closing conditions. Proceeds will be allocated to research and development, market expansion, and general corporate purposes. EF Hutton is the exclusive placement agent for this transaction. Further details will be available in the final prospectus supplement on the SEC's website.

  • Raising $2.25 million through a direct offering.
  • Funds allocated to research and market development.
  • Potential shareholder dilution from issuing 692,308 new shares.

The announcement of Datasea's $2.25 million registered direct offering is a significant event that has several implications for investors. The offering price of $3.25 per share establishes a benchmark for the company's current valuation. This can be a critical indicator of market sentiment and potential future stock performance.

The proceeds from this offering are intended for research and development, market development and general corporate purposes. While investments in these areas can potentially drive future growth, retail investors should note that the effect on the balance sheet and whether these investments will lead to a tangible increase in revenue and profitability remains to be seen.

In the short term, such offerings can lead to stock price dilution, as the increase in the number of shares outstanding usually results in a lower earnings per share (EPS). Long-term investors, however, might view this as a strategic move to fuel growth, provided that the company effectively utilizes the raised funds.

Given the involvement of EF Hutton LLC as the exclusive placement agent, it also underscores a level of institutional confidence in the offering. Investors should watch for the closing conditions and any subsequent announcements that could impact the stock price.

For a better understanding, earnings per share (EPS) is a measure of a company's profitability, calculated as net income divided by the number of outstanding shares. An increase in the number of shares without a corresponding increase in net income will reduce the EPS, which may negatively affect the stock price.

From a market development perspective, Datasea's move to raise funds through a direct offering highlights their focus on expanding their high-tech intelligent acoustics and 5G-AI multimodal communication technology sectors. These areas are rapidly evolving and hold significant growth potential, especially with the increasing demand for advanced communication technologies.

The use of proceeds for R&D and market development indicates a strategy aimed at innovation and market penetration. Investors should consider the competitive landscape of the 5G and AI sectors, where companies frequently require substantial capital for sustained innovation and growth. The success of these initiatives depends on Datasea's ability to efficiently allocate the new capital to high-return projects.

Moreover, it's important to note the timing of this offering. With the effective shelf registration statement on Form S-3, Datasea has a streamlined process for raising capital, suggesting they are positioning themselves strategically to take advantage of market opportunities.

For context, a shelf registration allows a company to register a new issue of securities without having to issue them immediately. This can be advantageous during favorable market conditions, providing flexibility in capital raising activities.

BEIJING, July 2, 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 that it entered into a share purchase agreement with a certain institutional investor to purchase 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. The offering is expected to close on or about July 3, 2024, subject to satisfaction of customary closing conditions.

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

EF Hutton LLC is acting as the exclusive placement agent for the offering.

The securities described above are being 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 will be filed with the SEC. Copies of the prospectus supplement and the accompanying prospectus relating to this offering may be obtained, when available, 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 timing for closing of the offering, the satisfaction of customary closing conditions related to the registered direct offering, and 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 is the amount Datasea expects to raise in the direct offering?

Datasea expects to raise $2.25 million through the direct offering.

How many shares will Datasea issue in the direct offering?

Datasea will issue 692,308 shares of its common stock.

What is the offering price for Datasea's shares in the direct offering?

The offering price is $3.25 per share.

When is the closing date for Datasea's registered direct offering?

The offering is expected to close on or about July 3, 2024.

For what purposes will Datasea use the proceeds from the offering?

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

Who is acting as the exclusive placement agent for Datasea's offering?

EF Hutton is the exclusive placement agent for the offering.

Where can I find the final prospectus supplement for Datasea's offering?

The final prospectus supplement will be available on the SEC's website.

Datasea Inc.


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