Blue Hat stock price plummeted before the market open due to a $6.4 million financing at a price of $0.20 per share

Investing.com - Blue Hat Interactive Entertainment Technology (NASDAQ:BHAT) stock plummeted 74% in pre-market trading on Friday after the company announced a public offering of 32 million units priced at $0.20 per unit. The Cayman Islands-based company expects to raise approximately $6.4 million in gross proceeds before underwriting discounts and other offering expenses.

Each unit includes one common share and one warrant, with the warrant initially exercisable for one common share. The warrants will expire one year from the date of issuance and can be exercised immediately. The initial exercise price is $0.20 per share, but will be adjusted to 70% and 50% of the initial exercise price on the second and fifth trading days after the closing, respectively, while proportionally increasing the number of underlying common shares.

The warrants can be exercised at any time within one year from the date of issuance at a zero exercise price, allowing holders to receive common shares equal to twice the number of shares that would be issued upon cash exercise, without additional consideration. These units do not have standalone rights and will not be certificated or issued as separate securities.

The offering is expected to close on February 23, 2026, subject to customary closing conditions. The company plans to use the proceeds for working capital and general corporate purposes.

The company has granted Maxim Group LLC a 15-day option to purchase up to an additional 4.8 million units, including up to 4.8 million common shares and up to 4.8 million warrants, or any combination thereof. Pryor Cashman LLP serves as the company’s U.S. securities legal counsel, and Hunter Taubman Fischer & Li LLC is the underwriters’ U.S. securities legal counsel.

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