Bit Brother Ltd. (BTB), a company engaged in the speciality tea product distribution and retail business in China, has increased 5.22% in the premarket trading session. Consequently, BTB stock is trading at $1.05 at the time of this writing. On Tuesday, BTB stock closed the day at $1.00 after increasing 5.06% during regular trading hours. This continuous rise could be attributable to the filing of Form 6-K in SEC on Tuesday.
Securities purchase agreement
In the form 6-K, BTB announced to have entered into a certain securities purchase agreement with some non-US persons. Under the securities act, which define the regulations regarding securities purchase agreement, the company agreed to sell an aggregate of 15,814,652 units. Each unit was to consist of one ordinary share of the company, no par value, and three warrants to purchase one share each. The initial exercise price was set at $0.875 per share, for $0.70 per unit for an aggregate purchase price of about $11.07 million. The warrants were exercisable 6 months from the date of issuance at an initial exercise price of $0.875 per share for cash. The warrants had to expire five and a half years from their date of issuance.
Business alteration strategies by BTB
On 26th June, BTB announced to change its name from Urban Tea Inc. to Bit Brother Limited, effective from 16th June 2021. The company’s ticker symbol also changed from MYT to BTB. The company also announced that its US-based subsidiary, namely Bit Brother New York Inc., has obtained Money Service Business License from the US FinCEN Department of Treasury. The license would allow the company to act as a foreign exchange dealer, money transfer agent and seller of money orders. Mr Xianlong Wu, CEO of Bit Brother, commented on the development that the company anticipates setting up a cryptocurrency system for payments in near future. He further said that the company has planned to acquire additional state licenses and permits for the money service business.
What’s next for BTB?
Statistics reveal a sanguine picture for BTB. The stock has increased more than 8% in the last three months, primarily on the back of securities purchase agreements. The analysts believe that despite its smaller magnitude, the company is improvising the strategies which could take its business to next level in near future. So, potential investors should keep a close eye on BTB stock.
