Datasea Inc (NASDAQ:DTSS) shares are trading lower by 38.3% to $0.40 Tuesday morning after the company commenced an underwritten public offering.

The underwritten public offering is for 5 million shares of common stock at a public offering price of $0.40 per share, for aggregate gross proceeds of approximately $2.0 million.

The company has also granted the underwriters a 45-day option to purchase up to an additional 750,000 shares of common stock at the public offering price per share.

The offering is expected to close on September 13, subject to satisfaction of customary closing conditions.

According to data from Benzinga Pro, Datasea has a 52-week high of $1.95 and a 52-week low of $0.37.