ChinaNet Online Holdings, Inc. Announces Entry into Agreements for Registered Direct Placement of $11 Million of Common Stock and Warrants
OREANDA-NEWS. ChinaNet Online Holdings, Inc. ("ChinaNet" or the "Company"), an integrated online advertising, precision marketing and data-analysis and management services platform, today announced that it has entered into a securities purchase agreement with three institutional investors for a registered direct placement of approximately $11 million of shares of common stock of the Company at a price of $5.15 per share. The Company will issue a total of 2,150,001 shares of common stock to the institutional investors. As part of the transaction, the Company will also issue to the investors warrants to purchase up to 645,000 shares of common stock at an exercise price of $6.60 per share, which warrants will have a term of 30 months from the date of issuance.
The net proceeds from this offering are expected to be $10,296,005 and will be used for general working capital purposes. If the warrants are exercised in full, the Company will receive additional proceeds of approximately $4.3 million. The completion of the placement is expected to occur on or about January 17, 2018, subject to the satisfaction of customary closing conditions.
FT Global Capital, Inc. acted as the exclusive placement agent in connection with the offering.
These securities are being offered through a prospectus supplement pursuant to the Company's effective shelf registration statement and base prospectus contained therein. A shelf registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission (the "SEC"). A prospectus supplement related to the offering will be filed with the SEC.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities, in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.