DatChat Inc (DATS) stock soars after Avila Security deal

January 20, 2022 09:36 AM PST | By Rupam Roy

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DatChat Inc (DATS) stock soars after Avila Security deal — Image source: ESB Professional,shutterstock

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Highlights

DatChat has signed a letter of intent to acquire Avila Security Corporation.

DATS stock rose over 22% in the past five days.

The company is building a Web 3.0 platform to protect NFTs and encrypted messages.

DatChat, Inc. (NASDAQ:DATS) shares jumped more than 20% on Thursday morning after the company announced to acquire Avila Security Corporation in a cash-and-stock deal.

The New Jersey-based communication software company said it had signed a letter of intent to acquire Avila Security. DatChat provides blockchain, cybersecurity, and social media solutions.

It also provides a messenger and social networking platform for users.

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Under the agreement, DatChat will own the rights of four patents and two pending patent applications. DatChat will pay US$1 million in cash and US$2.5 million worth of restricted common stock.

The deal will help expand DatChat’s intellectual property assets, including blockchain-based digital rights management and object sharing technology, such as encrypted WebRTC real-time video and audio-streaming services.

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DatChat, Inc. (NASDAQ:DATS) stock performance, financial highlights

Its shares traded at US$3.60 at 9:33 am ET on January 20, up 20.40% from its previous close. The stock gained 22.54% in five days. DatChat has a market capitalization of US$58.59 million.

Its trading volume on January 19 was 6,787,475. The DATS stock saw the highest price of US$18.50 and the lowest price of US$2.28 in the last 52 weeks.

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For the three months ended September 30, 2021, the company reported a net loss of US$1.85 million, or US$0.12 per share, against a loss of US$0.32 million, or US$0.02 per share in the same period a year ago.

Bottomline

On Tuesday, the company said it is developing a Web 3.0 platform to protect NFTs and encrypted messages as part of efforts to build its metaverse infrastructure. DatChat CEO Darin Myman said the acquisition would open up new revenue streams.

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