SOS Limited stock plunges after announcing $7.5 million offering

Published 30/07/2025, 16:32
© Reuters.

Investing.com -- SOS Limited (NYSE:SOS) stock plummeted 53% following the announcement of a registered direct offering and concurrent private placement that would raise approximately $7.5 million.

The blockchain and cryptocurrency operations company disclosed it has entered into a securities purchase agreement with institutional investors to sell 2,142,855 American Depositary Shares (ADS) in a registered direct offering. Additionally, SOS will issue unregistered warrants to purchase up to 4,285,710 ADSs in a private placement.

According to the company’s announcement, the combined effective offering price for each ADS and accompanying warrants is $3.50. The warrants will be immediately exercisable with an expiration date five and a half years from the initial exercise date and carry an exercise price of $3.50 per share.

The transaction is expected to close around July 31, 2025, subject to customary closing conditions. Maxim Group LLC is serving as the sole placement agent for the offering.

SOS Limited describes itself as a multifaceted company engaged in blockchain and cryptocurrency operations as well as commodity trading. The significant stock decline reflects the market’s reaction to the potential dilution from the new share issuance.

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