The OLB Group's (NASDAQ: OLB) shares have plunged premarket on Thursday after it announced that it has entered into agreements with certain institutional investors to sell 1.4 million shares in a registered direct offering.
The shares are priced at $4.30 per share in a registered direct offering, with the gross proceeds expected to be approximately $6.1 million.
Each share of common stock is being sold, in a concurrent private placement, with one common share purchase warrant. Each warrant will allow the holder to acquire one share of the company at an exercise price of $5.42 per share. It will be exercisable beginning six months from the date of issuance and will expire five and a half years from the date of issuance.
OLB said it intends to use the net proceeds from the offering for working capital purposes.
The OLB Group's shares have fallen 26.2% to $4 following the announcement.
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