WBAI - 500.com trades high on preference shares issuance

500.com (WBAI) trades 6.9% higher premarket after entering into a share exchange agreement with Bee Computing shareholders wherein the former expects to issue 45.8M of its Class A ordinary shares valued at $2.182/share corresponding to $21.82/ADS leading to a total consideration of $100M to selling shareholders and R&D team members.The ordinary shares represent ~8.18% of the company's total outstanding share capital as of Mar. 31, 2021.Post the share exchange agreement, the company shall issue at the first closing (expected to occur in 2Q21) 16M shares of $35M worth of its Class A ordinary shares to selling shareholders; at the subsequent closing it will issue 29.8M or $65M worth of its Class A ordinary shares.The company plans to invest a minimum of $30M in Bee Computing to develop cryptocurrency mining chips and mining machines after first closing.

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500.com trades high on preference shares issuance