DatChat Inc (NASDAQ:DATS) Stock Recovers After The Recent Fall

The communication software firm DatChat Inc (NASDAQ:DATS), which is focussed on protection and privacy of its users, was in sharp focus among investors yesterday and its stock ended the day with gains of as much as 11%.

There was no news about the company yesterday but last week, the company was in the news after it announced the pricing for its initial public offering of its units made up of common stock and warrants. In this offering, the company is going to offer as many as 2,891,567 units and the units are going to be offered at the price of $4.15 each.

The company is looking to raise $12 million in the form of gross proceeds from the sale of these units and the associated warrants. However, it should be noted that commissions, discounts for underwriters and other associated expenses related to the offering are going to be deducted from the proceeds.

However, that is not all. DatChat has also given the underwriters the option to pick up 433,734 shares of the common stock and warrants for purchasing another 433,734 shares within 45 days. Those units are going to be offered at the offering price but after the deduction of the underwriting commissions and discounts.