Datasea (NASDAQ:DTSS) stock is falling on Tuesday after the smart security solutions company announced a proposed public stock offering.
Datasea is offering 5 million shares of DTSS stock at a price of 40 cents per share. That has the company expecting to raise up to $2 million from the offering. There’s also an option for underwriter EF Hutton to acquire another 750,000 shares at the public offering price.
Datasea notes that it already has plans for the funds it will raise from this public stock offering. The company says it will use the money to cover costs connected to research and development, market development and general corporate purposes.
How This Affects DTSS Stock
Shares of DTSS are falling and that makes sense, as investors typically react negatively to public stock offerings. That’s due to it increasing the total number of shares available, which dilutes current investors’ states. The offering is also priced below the prior closing price of 65 cents.
With today’s stock offering news comes heavy trading of DTSS stock. As of this writing, more than 645,00 shares of DTSS have changed hands. That’s already above the company’s daily average trading volume of about 634,000 shares.
DTSS stock is down 39.3% as of Tuesday morning.
Investors seeking out even more of the most recent stock market news will want to keep reading!
We’ve got all of the biggest stock market stories worth reading about on Tuesday! That includes what has shares of Acelyrin (NASDAQ:SLRN) stock, Ascent Solar Technologies (NASDAQ:ASTI) stock and AgileThought (NASDAQ:AGIL) stock moving today. All of that news is ready to go at the links below!
More Stock Market News for Tuesday
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
