Shares of Urban Tea, Inc. [NASDAQ: MYT] plunged 39.01% at the time of writing on Wednesday. The weak performance of the firm demonstrated the negative sentiments of the investors after it has disclosed that it has inked a securities buying contract with certain authorized investors to dump nearly $25.0 million of its ordinary shares and warrants in a registered direct offering.
As per the agreement, the firm has confirmed to dump 6,950,000 ordinary shares and warrants to buy 6,950,000 ordinary shares. The warrants will be practiced immediately upon the date of grant and have an exercise price of $3.60. The warrants will expire five and half years from the date of grant. The firm has set the buying price for one ordinary share and one corresponding warrant will be $3.60.
Shares of Urban Tea went down 39.05% as it lost -1.81 at the time of writing on Wednesday. The firm has recorded the last closing price of $2.83 million. Urban Tea has disclosed that it is anticipating the gross profit of $25 million prior to the subtraction of placement agent fees and other projected offering expenses.
Urban Tea is anticipating utilizing the profit from the offering in its scheduled blockchain and cryptocurrency mining operation and for working capital and general business purposes. The registered direct offering is anticipated to execute on or about April 30, 2021, obedient to the fulfillment of usual execution conditions.