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      DatChat Inc. (DATS) Once Again Under Corrections Following Gains on Letter of Intent News - Stocks Telegraph

      By Gule Rukhsar

      Published on

      January 21, 2022

      5:38 AM UTC

      DatChat Inc. (DATS) Once Again Under Corrections Following Gains on Letter of Intent News - Stocks Telegraph

      On January 20, DatChat Inc. (DATS) announced entering into a Letter of Intent for acquiring Avila Security Corporation and its Web 3.0 patents. Following the announcement, the stock gained a good 11.37% in regular trading at $3.33. Consequently, the stock fell under corrections in the following after-hours session. Hence, DATS lost 5.71% to corrections in the after-hours at $3.14, on Thursday.

      The communications and social media company with a focus on privacy, DatChat Inc. has a market capitalization of $58.6 million. Currently, its 19.6 million shares are outstanding in the market.

      Overview of DATS’ Movement

      DATS stock has been on a rollercoaster ride lately. The company has been posting good news upon good news. Therefore, causing the stock to soar high and plunge down due to corrections and profit booking events. From the appointment of its first Chief Blockchain Architect, Mark Mathis to the initiation of Web 3.0 platform development, all recent news has been causing an uproar in the stock. But as always, these uptrends were followed by correction events. Given the good news, the stock has increased by 36.48% in the past five days alone.

      Similarly, the news of January 20 also caused the stock to surge in the regular trading session. DATS reached a high of $4.14 after almost fifty days, during the regular session. Consequent to the huge gain, the stock once again led the way for corrections. Thus, the stock fell under corrections to shed its gains in the after-hours on Thursday.

      DATS’ Letter of Intent

      According to the announcement, the company has signed a Letter of Intent for the acquisition of Avila Security Corporation. Subject to closing conditions, the acquisition will effectuate DATS to secure four issued patents and two pending applications of Avila Security. Moreover, the terms of the transaction encompass $1 million in cash. Also, the greater of 739,650 shares of restricted common stock or $2.5 million of (DATS) restricted common stock (based on 30-day closing price).

      Upon completion, this transaction will cause DATS’ intellectual property assets to significantly expand. Further, the company’s IP assets will then include: blockchain-based digital rights managements and object sharing technology; also encrypted WebRTC real-time video and audio streaming communications.

      Patents

      As per the announcement, the company will be able to acquire the following patents, as subject to closing conditions:

      U.S. Patent 11,151,229, U.S. Patents 10,873,852, Patent # 11,100,197 B1 and Patent # 11,176,226 B2.

      In addition, for reaching a definitive agreement, the companies have agreed to an exclusivity period till April 19, 2022.

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