DDC Enterprise Limited has launched an underwritten public offering of its DDC SAVOR 13.5% Perpetual Preferred Series A Shares, with an expected public price of $20 per share. The company also entered into agreements for a registered direct offering to institutional and accredited investors at the same price.
Those investors have agreed to purchase at least 1.2 million shares, representing $30 million in stated value. DDC expects gross proceeds from the direct offering to be at least approximately $24 million, before expenses. Underwriters in the public offering will have a 45-day option to buy up to 15% more shares than initially offered.
Each preferred share has a stated value of $25 and will accrue dividends daily at an annual rate of 13.5%, equivalent to $3.375 per share each year. Dividends are payable in cash on each business day. Holders may also receive one-time cash bonus dividends of $0.75, $1.25 or $2 per share if Bitcoin reaches $180,000, $250,000 or $350,000, respectively, for ten consecutive trading days.
DDC said it will maintain a segregated reserve account with enough cash to cover at least 12 months of daily dividends. The company may redeem the shares at 105% of their stated value, plus accrued dividends, before the third anniversary of issuance. After that point, redemption may be at stated value plus accrued dividends.
The shares are expected to be listed on the NYSE American under the symbol SVOR. Maxim is the sole book-running manager for the public offering. DDC plans to use net proceeds to repay up to 20% of existing convertible notes, fund the dividend reserve and support general corporate purposes, including potential Bitcoin acquisitions and mergers.
Sources: Investing.com News.