Shares of Bit Brother Limited (BTB) were rising in the premarket trading session today on November 10, 2021. BTB stock price saw an uptrend of 11.80% to reach $1.80 a share at the time of this writing. The stock was green in the previous trade and went up by 27.78% at closing.
Bit Brother Limited is the distributor and retailer of specialty tea products in China. The company offers a variety of tea-based beverages, light meals as well as bakery products. BTB stock has $56.96 current market value and 2,460,846 average trading volume. Let’s dig in to understand the reason behind this bull.
There has been no press release or announcement by the BTB stock today to support the current bullish sentiment. No analysts’ upgrades have been reported in recent times. However, the stock is getting momentum since it regained compliance with Nasdaq’s minimum bid price requirement. BTB stock regained compliance based on a $1.00 per share closing bid price for 10 consecutive business days from October 20, 2021, to November 2, 2021.
Registered Direct offering by BTB stock:
Back on July 20, 2021, Bit Brother did announce the closing of the previously announced registered direct offering of its common stock and warrants to buy 15 million ordinary shares. The per-share purchase price for this offering was $1.50 per share and the stock generated gross proceeds of $22.5 million. The exercise price of warrants is $1.50 and are exercisable after the issuance date. The warrants will expire after five years from the issuance date.
Acquisition of Angelo’s Pizza 1697 Inc by BTB stock:
On July 13, 2021, Bit Brother did announce the 51% acquisition of Angelo’s Pizza 1697 Inc via a non-binding letter of intent. For 30 years, Angelo’s Pizza was a family-style boutique restaurant and then pivoted to a chain restaurant for the next 90 years. The 120 years of its history have provided Angelo’s Pizza, strong brand recognition and excellent customer reviews. The total consideration for the 51% acquisition of Angelo’s Pizza was $12.5 million.
Financial View of BTB stock:
In the fiscal year 2020, BTB stock recorded significant growth in revenue as it reached $865.71K as compared to $401.81K in fiscal 2019. This represents 115.45% revenue growth from fiscal 2019. The earnings per share increased by 88.88%in fiscal 2020 from fiscal 2019.
The sentiment is positive for BTB stock after the regain of compliance with Nasdaq’s minimum bid price requirements. For the past one month, Bit Brother gained 75% however it lost 3.59% year to date.