GNS Stock Logs Biggest Intraday Decline In 27 Months On Pricing $8M Offering

• Genius Group stated that it has entered into a securities purchase agreement with American Ventures LLC as the lead investor.
• The agreement is for the purchase and sale of 21.6 million shares of ordinary shares in a registered direct offering at a public offering price of $0.37 per share.
• The company expects the offering to close on or about Thursday, April 16.

Shares of Genius Group (GNS) logged their worst intraday decline in nearly 27 months after the company announced the pricing of an $8 million registered direct offering.

Genius Group shares fell more than 32% in Wednesday’s opening session before paring some of the losses to hover 29% lower at the time of writing.

Genius Group Announces Pricing

Genius Group stated that it has entered into a securities purchase agreement with American Ventures LLC as the lead investor. The agreement is for the purchase and sale of 21.6 million shares of ordinary shares in a registered direct offering at a public offering price of $0.37 per share.

This is at a discount of over 18% compared to Tuesday’s closing price.

The company expects the offering to close on or about Thursday, April 16.

Genius Group stated that it plans to allocate $5.5 million from the offering’s net proceeds to acquire a senior secured convertible promissory note.

The note is immediately convertible into a 9.9% equity stake in Jewel Financial Limited, the sole shareholder of Jewel Bancorp.

The company added that this investment supports its previously announced GENIUS Act strategy to become a permitted payment stablecoin issuer and digital asset service provider.

In addition to the cash component, Genius Group said that it will issue 15 million ordinary shares to the sellers as part of the acquisition consideration, at a deemed price of $0.4 per share.

How Did Retail Traders React?

Retail sentiment on Stocktwits around Genius Group trended in the ‘extremely bullish’ territory, with message volumes at ‘high’ levels at the time of writing.

One bullish user downplayed the GNS stock drop today, saying investors need to relax.

GNS stock is down 44% year-to-date, but up 29% over the past 12 months. The iShares MSCI EAFE Small-Cap ETF (SCZ) is up 32% over the past 12 months, while the S&P International Small Cap ETF (GWX) is up 41%.

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