DeFi Development Priced CHAD Stock Offering at $9 Per Share
DeFi Development Corp., a Solana treasury company, has priced its Variable Rate Series C Perpetual Preferred Stock offering at $9 per share. This move is part of the company's plan to sell 2.2 million shares of the preferred security, known as CHAD Stock. The offering will produce $19.8 million in gross proceeds before underwriting commissions and other expenses.
The initial annual dividend rate on CHAD Stock is 13%, calculated against the $10 stated amount. This represents an effective annual yield of approximately 14.44% at the offering price. However, the dividend is variable and may be adjusted by DeFi Development's board based on interest rates, trading prices, and other factors.
The company plans to use the net proceeds from the offering for general corporate purposes, which may include working capital, Solana purchases, digital asset investments, acquisitions, and strategic initiatives. While no fixed portion has been assigned to Solana (SOL), investors should be aware that proceeds invested in SOL would remain exposed to price volatility.
DeFi Development has applied to list the preferred stock on the Nasdaq Capital Market under the ticker CHAD, with trading expected to begin after initial issuance. The company also intends to establish an at-the-market program for additional CHAD sales following the listing.