Blue Hat Interactive Entertainment Technology Announces $4.3 Million Registered Direct Offering of Ordinary Shares

Blue Hat Interactive announces a registered direct offering of 77,989,800 shares, raising approximately $4.3 million.

Quiver AI Summary

Blue Hat Interactive Entertainment Technology announced it has entered into agreements with institutional investors to sell approximately 77.99 million Ordinary Shares in a registered direct offering at a price of $0.055 per share, anticipated to generate around $4.3 million in gross proceeds. The offering is expected to close around January 14, 2025, pending customary conditions, with Maxim Group LLC serving as the sole placement agent. The shares are being offered under an effective shelf registration with the SEC and will be accompanied by a prospectus supplement. The company, which has shifted its focus from AR interactive entertainment to commodity trading, cautions that forward-looking statements in the press release are subject to uncertainties that may impact future performance.

Potential Positives

• Blue Hat Interactive has successfully entered into securities purchase agreements, indicating strong interest from institutional investors in the company's Ordinary Shares.
• The registered direct offering is expected to generate approximately $4.3 million in gross proceeds, which could provide the company with vital funding for its operations or strategic initiatives.
• The offering is being conducted under a shelf registration statement that was recently declared effective by the SEC, streamlining the process for capital raising.
• Increased liquidity through the sale of shares may enhance the company's financial flexibility and support future growth opportunities.

Potential Negatives

• The significant dilution of equity could negatively impact existing shareholders, as nearly 78 million new Ordinary Shares are being issued at a low price, which may decrease the value of their current holdings.
• The offering price of $0.055 per share suggests that the market may currently undervalue the company's stock, raising concerns about its financial health and growth potential.
• The reliance on institutional investors for capital in a registered direct offering indicates difficulties in accessing broader market funding or attracting a larger investor base.

FAQ

What is the purpose of Blue Hat's registered direct offering?

Blue Hat aims to raise approximately $4.3 million by selling 77,989,800 Ordinary Shares at $0.055 each.

When is the expected closing date for the offering?

The offering is expected to close on or about January 14, 2025, subject to customary closing conditions.

Who is the placement agent for the securities offering?

Maxim Group LLC is acting as the sole placement agent for Blue Hat's registered direct offering.

Where can investors find the prospectus for the offering?

Investors can obtain the prospectus supplement at the SEC’s website or from Maxim Group LLC directly.

What does Blue Hat primarily focus on now?

Blue Hat primarily engages in commodity trading in China, following its previous focus on AR entertainment and communication services.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$BHAT Hedge Fund Activity

We have seen 5 institutional investors add shares of $BHAT stock to their portfolio, and 1 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• UBS GROUP AG added 282,965 shares (+inf%) to their portfolio in Q3 2024
• CITADEL ADVISORS LLC added 100,171 shares (+inf%) to their portfolio in Q3 2024
• TWO SIGMA SECURITIES, LLC added 22,052 shares (+inf%) to their portfolio in Q3 2024
• GEODE CAPITAL MANAGEMENT, LLC added 18,062 shares (+141.4%) to their portfolio in Q3 2024
• XTX TOPCO LTD added 18,042 shares (+inf%) to their portfolio in Q3 2024
• SCHONFELD STRATEGIC ADVISORS LLC removed 17,700 shares (-13.1%) from their portfolio in Q3 2024

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Full Release

XIAMEN, China, Jan. 13, 2025 (GLOBE NEWSWIRE) --

Blue Hat Interactive Entertainment Technology (“Blue Hat” or the “Company”) (NASDAQ: BHAT)

, today announced that it has entered into securities purchase agreements with several institutional investors to purchase an aggregate of 77,989,800 Ordinary Shares (the “Ordinary Shares”) in a registered direct offering. The Ordinary Shares are being sold at an offering price of $0.055 per share.

The gross proceeds to the Company from the registered direct offering are estimated to be approximately $4.3 million before deducting the placement agent’s fees and other estimated offering expenses payable by the Company. The offering is expected to close on or about January 14, 2025, subject to the satisfaction of customary closing conditions.

Maxim Group LLC is acting as the sole placement agent in connection with the offering.

The Ordinary Shares are being offered pursuant to a shelf registration statement on Form F-3 (File No. 333-274893), which was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on January 26, 2024. The offering will be made only by means of a prospectus supplement that forms a part of such registration statement.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. A prospectus supplement relating to the Ordinary Shares will be filed by the Company with the SEC. When available, copies of the prospectus supplement relating to the registered direct offering, together with the accompanying prospectus, can be obtained at the SEC’s website at www.sec.gov or from Maxim Group LLC, 300 Park Avenue, New York, NY 10022, Attention: Syndicate Department, or via email at syndicate@maximgrp.com or telephone at (212) 895-3500.

About Blue Hat

Blue Hat was formerly a provider of communication services, as well as a producer, developer, and operator of AR interactive entertainment games, toys, educational materials and now primarily engage in commodity trading in China. For more information, please visit the Company’s investor relations website at http://ir.bluehatgroup.com. The Company routinely provides important information on its website.

Forward-Looking Statements:

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the Company’s SEC filings. These risks and uncertainties could cause the Company’s actual results to differ materially from those indicated in its forward-looking statements.

Contact:



Blue Hat Interactive Entertainment Technology


Phone: +86 (592) 228-0010


Email:

ir@bluehatgroup.net

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.