Benzinga | May 6, 2021 09:18AM EDT

Blue Hat Interactive Technology Announces $5.66M Direct Offering Of 6.29M Shares At $0.90/Share

Blue Hat Interactive Entertainment Technology (NASDAQ:BHAT), a leading producer, developer and operator of augmented reality interactive entertainment games, toys and educational materials in China, today announced that it has entered into a securities purchase agreement with two institutional investors, providing for the purchase and sale of 6,290,000 of its ordinary shares at a price of $0.90 per share in a registered direct offering, resulting in total gross proceeds of $5,661,000, before deducting the placement agent's fees and other estimated offering expenses. The Company also agreed to issue to the investors unregistered warrants to purchase up to 4,088,500 ordinary shares in a concurrent private placement. The warrants have an exercise price of $1.12 per share, will be exercisable immediately and will expire three years following the date of issuance.

FT Global Capital, Inc. is acting as the sole placement agent in this offering.

The registered direct offering and private placement are expected to close on or about May 10, 2021, subject to customary closing conditions. Immediately following the closing of the offering, and after giving effect to the issuance of the 6,290,000 ordinary shares in the registered direct offering, there will be 53,417,200 ordinary shares outstanding.

A shelf registration statement on Form F-3 (File No. 333-249056) relating to the ordinary shares to be issued in the registered direct offering was previously filed with the Securities and Exchange Commission (the "SEC") on September 25, 2020 and declared effective by the SEC on October 6, 2020. Such shares are being offered only by means of a prospectus. A prospectus supplement and the accompanying prospectus relating to and describing the terms of the registered direct offering will be filed with the SEC and will be available on the SEC's website at www.sec.gov.

The unregistered warrants described above were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Act"), and Regulation D promulgated thereunder and, along with the ordinary shares underlying the warrants, have not been registered under the Act or applicable state securities laws. Accordingly, the warrants and underlying ordinary shares may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.