RTTNews | Jan 20, 2022 10:18AM EST

10:18 Thursday, January 20, 2022 (RTTNews.com) - Shares of communications and social media company, DatChat, Inc. (DATS) are rising more than 24% Thursday morning after the company said it signed a letter of intent to acquire Avila Security Corporation in a cash-and-stock deal.

If completed, the transaction will expand DatChat's intellectual property assets to include blockchain based digital rights management and object sharing technology, including encrypted WebRTC real-time video and audio streaming communications, DatChat said.

As per the deal, DatChat will pay $1 million in cash and $2.5 million of restricted common stock based on the previous 30 day average closing share price.

"From this, we believe that we will be able to leverage new revenue opportunities from both the licensing and development of this technology. Notably, the blockchain-based digital rights management patents alone will give us the ability to develop a platform for users to easily license and manage NFTs, audio and video content, documents, subscriptions, messages, self-sovereign identity and much more."

DATS, currently at $3.72, has been trading in the range of $2.28- $18.50 in the past 52 weeks.

Read the original article on RTTNews ( https://www.rttnews.com/3256295/datchat-rallies-on-intention-to-acquire-avila-security.aspx)

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