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      Why Happiness Development Group Limited (HAPP) stock is down today? - Stocks Telegraph

      By Muhammad Ali

      Published on

      January 21, 2022

      4:44 PM UTC

      Why Happiness Development Group Limited (HAPP) stock is down today? - Stocks Telegraph

      Shares of the Happiness Development Group Limited (HAPP) stock were gloomy in the current market trading session today on January 21, 2022. HAPP stock price saw a decline of 6.68% to drop at $0.48 a share at the time of this writing. The trading volume on the last check was 474,494, lower than the average trading volume. Let’s have a deep look at this stock.

      Happiness Development Group Limited is operating as the research, developer, and manufacturer as well as seller of nutraceutical and dietary supplement products in China. HAPP stock has a market cap of $16.29 million and a 541,820 average trading volume.

      What’s Happening?

      The current bearish momentum of the HAPP stock is the result of the announcement of a $10 million private placement by the company. Happiness Development today announced that it has signed the security purchase agreement with several non-U.S. strategic investors. According to the agreement, the company will sell 12,500,000 Class A ordinary shares at $0.80 per share price. This represents a 45% premium to the market price of its Class A ordinary shares.

      The company is planning to use net proceeds from the offering in the expansion of its eCommerce sales around the globe. The company also intends to add more products to its eCommerce stores. Part of the proceeds is intended to use for the working capital and general corporate purposes.

      Financial Results of HAPP stock

      Company on January 6, 2022, announced financial results for the six months ended September 30, 2021. In this tenure, the company generated $46.88 million in revenues. This represents a whopping increase of $25.01 million or 114.3% from the same tenure of the previous year. The increase is attributable to the start-up of new goods.

      The operating loss in the six months ended September 30, 2021, for the HAPP stock, was $10.53 million. This operating loss was $14.22 million in the same period of the previous year. The performance in the healthcare products segment resulted in this decline.

      Net loss attributable to the shareholders of the HAPP stock was $ 10.05 million in the six months ended September 30, 2021. In the same tenure of the previous year, the company reported $3.19 million net income attributable to the shareholders of HAPP stock.

      Wrap Up

      The announcement of the private placement is the obvious reason for the decline in HAPP stock. In the last six months, this stock has lost approximately 67%.

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