Blockchain Technology Stock $RIOT Files with SEC to issue more shares and dilute stock. (NASDAQ:RIOT)


Riot is set to issue more shares at a price of $1.74 and dilute their stock. If the current price is above $3.20 and the offer price of new shares in the amount greater than current outstanding shares is $1.74 then that means theoretically price is going down.

Implied Volatility rising:  https://finance.yahoo.com/news/implied-volatility-surging-riot-blockchain-125512313.htmlContact: Our principal executive offices are located at 202 6th Street, Suite 401, Castle Rock, CO 80104, and our telephone number is (303) 794-2000. Our website address is www.riotblockchain.com. The information contained on, or accessible through, our website is not part of this prospectus.

https://sec.report/Document/0001079973-20-000871/

Published: 2020-10-07 09:20:25

We believe cryptocurrencies offer many advantages over traditional, fiat currencies, although many of these factors also present potential disadvantages and may introduce additional risks, including:

·immediate settlement;
·elimination of counterparty risk;
·no trusted intermediary required;
·lower fees;
·identity theft prevention;
·accessible by everyone;
·transactions are verified and protected through a confirmation process, which prevents the problem of double spending;
·decentralized – no central authority (government or financial institution); and
·recognized universally and not bound by government imposed or market exchange rates.

Intellectual Property : Page 7

Dilution of Shares:

Purchasers in this offering will experience immediate and substantial dilution in the book value of their investment.

The public offering price of our common stock is substantially higher than the net tangible book value per share of our common stock as of June 30, 2020, before giving effect to this offering. At an assumed public offering price of $2.60 per share (which was the last reported sales price per share of our stock on October 2, 2020), we will have 87,384,328 shares of Common Stock issued and outstanding after completion of this offering. After deducting estimated offering expenses and estimated sales agent commissions payable by us, our pro forma, as adjusted, net tangible book value per share after giving effect to the sale of shares of our Common Stock in the aggregate amount of $100,000,000 at the assumed offering price would be $1.74 Accordingly, purchasers of shares of our Common Stock in this offering will incur immediate and substantial dilution of approximately $0.86 per share, representing the difference between the pro forma net tangible book value per share of our securities after the offering and the pro forma net tangible book value per share of our securities prior to the offering. If the price at which the shares of our common stock are sold in this offering increases, the dilution experienced by such purchasers will increase proportionately. Furthermore, if previously issued and outstanding options or warrants are exercised, or if additional derivative securities are issued, you could experience further dilution upon their conversion into shares of our Common Stock. For a further description of the dilution that our stockholders will experience immediately after this offering, see the section in this prospectus supplement entitled “Dilution” on page S-5 of this prospectus supplement.

Page S-8

General

We are authorized to issue 170,000,000 shares of common stock, at no par value per share.

2020 Annual Meeting of Shareholders
November 12, 2020 • 12:00pm EST
Meeting Link: www.virtualshareholdermeeting.com/RIOT2020

 

DISCLAIMER: I AM NOT A FINANCIAL ADVISOR. THE CONTENTS IN THIS ARTICLE IS FOR R&D PURPOSES AND IS NOT INTENDED TO SIGNAL A LONG OR SHORT POSITION IN THE STOCK. WISH EVERYONE GOOD LUCK AND FORTUNE IN THE MARKETS!