On January 12, 2024, Mega Matrix Corp. (the “Company”) entered into a Unit Subscription Agreement (the “Agreement”) with certain investors (collectively the “Subscribers”), pursuant to which the Subscribers agreed, subject to certain terms and conditions of the Agreement, to purchase an aggregate of 2,490,000 units (the “Units”) for an aggregate purchase price of $3,735,000, or $1.50 per unit (the “Offering Purchase Price”). Each Unit consists of one (1) share of common stock of the Company, $0.001 par value, and one (1) warrant (the “Warrant”), with each Warrant entitling the holder to purchase one share of common stock at an exercise price of $1.50 per share at any time for a period of up to five (5) years starting six (6) months from the issuance date at which time the Warrant will expire (“Offering”). The Agreement contains customary representations, warranties and covenants of the parties, and the closing is subject to customary closing conditions. The closing of the Offering occurred on January 17, 2024. this is the sec filing for a stock called MPU. I’m a bit confused as to what it is saying. I believe it’s saying that certain investors are allowed to purchase this stock at the price of 1.50. If so isn’t that terrible news as the price would plummet down to the 1.50s?
that’s how issuances work. New investors buy at a discount. Otherwise why would they agree to the terms.
yeah that’s what i was assuming but im confused will the stock price drop to that price when they buy it ?
it should be in the docs or company announcements. The shares will be marketed to institutional investors.