A dip in stock while most time bringing a good buying opportunity forward for the investors may not always be a wise choice for long-term investments. One always needs to investigate the potential and future progress of the company along with both its technicals and fundamentals. But in the case of profit booking, dips are mostly a good call.
Currently, SOS investors are making some nice gains on the latest dip in SOS Ltd. (SOS) stock. The company announced a registered direct offering worth $20 million yesterday, March 31, 2022. Resultantly, the stock took a harsh hit in yesterday’s regular session to reach $0.5366 at the close. The stock recorded its new 52-week low in the session at $0.4490. Lighting up a good buying opportunity for investors, the dip is currently being bought as the stock is rallying by 9.32% in today’s premarket. At the last check, SOS was trading at a price of $0.5822 per share.
How is SOS doing in 2022?
Lacking portfolio diversification SOSO lost an immense value of over 88.8% last year. A stark reminder of how important portfolio diversification is, the company still lacks on the part. However, 2022 so far has been a little bit better than last year as the stock’s current year losses stand at 34.74%.
The Offering
The China-based data mining and analysis services provider entered into a securities purchase agreement worth $20.02 million of ADSs. The registered direct offering with certain accredited investors includes 35,750,000 ADSs at a price of $0.56 per share. The ADSs shares each represent one Class A Ordinary Share of the company. Expected to close around April 4, 2022, the offering’s net proceeds are intended for developing SOS’ North American business. Moreover, a part of the proceeds will also go into working capital and general corporate purposes.
Additionally, SOS also announced the reduction of ADS purchase warrant exercise price to $0.56 per share, that were issued earlier. The issued warrants include those issued on February 17, 2021, February 22, 2021, March 2021, and April 2021.
SOS’ NYSE Non-compliance
Presently, the company is in non-compliance with NYSE trading standards due to its ADSs trading price. Hence, the company has a duration of six months since the non-compliance letter dated January 14, 2022, to regain compliance with the NYSE. If SOS failed to regain compliance with NYSE in the given grace period, NYSE will commence suspension and delisting procedures.
