Color Star Tech Stock Plunges After Raising $21.5M Via Institutional Equity Offering

September 24, 2021 1:51 PM | 1 min read

Color Star Technology Co Ltd CSCW agreed to sell 31.6 million shares and warrants to purchase 22.1 million shares in a secondary institutional offering.
Each unit consists of one share and one warrant to purchase 0.7 shares. The purchase price per unit is $0.68.
The company expects gross proceeds from the sale of the securities to be $21.5 million, which will serve general corporate and working capital purposes.
Color Star will also issue a warrant to purchase 0.95 million shares to the placement agent. The investor warrants and placement agent warrants are initially exercisable at $1.00 per share.
Color Star recently disclosed plans to acquire Wuhan Chujing Esports Culture Communication Co., Ltd. for an undisclosed sum.
Price Action: CSCW shares traded lower by 34.4% at $0.57 on the last check Friday.