What's Going On With DatChat Stock?

DatChat, Inc. DATS shares are trading higher Tuesday after the company issued a letter to shareholders and provided a corporate update.

What To Know:

DatChat announced the separation of DatChat and SmarterVerse into 2 separate publicly listed companies. It will distribute its shares of SmarterVerse to DatChat shareholders in an attempt to accelerate growth and opportunities for each company.

Currently, DatChat owns approximately 75% of SmarterVerse, Inc., the entity that owns and operates its Habytat AI Gaming platform and metaverse.

The plan is subject to board approval, and if the distribution proceeds, DatChat shareholders will maintain their current shares in DatChat and get a pro-rata distribution of DatChat’s shares of SmarterVerse common stock.

DatChat Inc is a blockchain, cybersecurity and social media company and delivers a free mobile messaging application called DatChat Messenger.

According to data from Benzinga Pro, 20.05% of DatChat shares are being sold short which may be contributing to the stock’s large price move following the announcement.

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DATS Price Action: According to Benzinga Pro, DatChat shares are up 52% at $3.18 at the time of publication.

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