Bit Brother Ltd (NASDAQ:BETS) shares are trading higher by 16.7% to $0.039 Wednesday morning, rebounding following Tuesday weakness, after the company on Tuesday announced a deal to sell $12.0 million worth of Class A ordinary shares, Class D warrants and Class E warrants to accredited investors through a registered direct offering.
The offering includes 184,615,385 Class A ordinary shares with associated Class D and Class E warrants, sold at $0.065 per share. Class D warrants can be exercised immediately at $0.06 for five years, subject to adjustments after 30 days, while Class E warrants can be exercised at $0.13 for two years, both offering cashless exercise options.
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The company also decided to conduct a reverse split to prevent their share price from falling below $0.01 for five consecutive days. Through this move, they expect to generate approximately $12.0 million before deducting fees and expenses.
The offering is anticipated to conclude around December 8, pending standard conditions, and Maxim Group LLC is overseeing the placement as the sole placement agent.
What Else?
Bit Brother late Tuesday also announced the company has secured a Certificate of Occupancy for its upcoming 2-acre cryptocurrency mining farm in Abilene, Texas. They’ve met city regulations by clearly separating industrial operations from residential areas.
With an initial $5 million investment in mining servers, they anticipate starting operations by early 2024, targeting a monthly production of 12 Bitcoin (CRYPTO: BTC) pending successful equipment delivery and functionality.
According to data from Benzinga Pro, Bit Brother has a 52-week high of $0.66 and a 52-week low of $0.021.
