Why DatChat (DATS) Stock Is Getting Hammered

DatChat Inc DATS shares are trading lower by 63.9% to $3.22 during Wednesday’s session after the company announced the pricing of a $5.1 million registered direct offering priced at-the-market under Nasdaq rules.

DatChat announced it has entered into agreements with institutional investors for a direct offering of 1.2 million shares of common stock at $4.25 per share. The offering is expected to close on January 10, pending customary conditions.

Benchmark Company, LLC is serving as the sole placement agent. The offering is projected to generate gross proceeds of approximately $5.1 million, which the company plans to allocate toward working capital and general corporate expenses.

Read Also: US Private Businesses Add 122,000 Jobs In December: ‘Slowdown In Both Hiring And Pay Gains’

Should I Sell My DATS Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold.

For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.

DATS has a 52-week high of $9.34 and a 52-week low of $1.01.