DatChat (DATS) was sinking 58% during Wednesday pre-trade, erasing a large slice of a more than 355% gain the prior session, after the social media company said it priced a direct offering of 1.2 million shares of its common stock at $4.25 apiece, generating around $5.1 million in gross proceeds.

After first deducting paying offering costs payable by the company, DatChat is expecting to use the net proceeds for working capital and general corporate expenses, it said.