Shareholders of Visium Technologies Inc (OTCMKTS:VISM) were in for a rough ride on Wednesday as the stock tanked by as much as 16% amidst a heavy selloff. While it is true that there was no specific news about the company yesterday, there was a significant development with regards to Visium on Tuesday.
On September 14 it emerged that the company signed a securities purchase agreement by way of which it managed to raise as much as $570,000 from a solitary institutional investor. As per the provisions of the securities purchase agreement, Visium sold as many as 150,000,000 shares of its common stock to the investor as part of a registered direct offering.
The shares were sold at a par value of $0.0001 each. In this regard, it needs to be noted that the sole placement agent for the offering was Network1 Financial Securities Inc. As per the agreement, the placement agent is entitled to $52,000 in cash for its services. Visium also noted that it estimates that it was going to get net proceeds of as much as $687,500 from the placement. It now remains to be seen if the Visium stock can actually make a comeback over the course of the coming days.
