AIFU secures $31.6 million through private placement of shares

GUANGZHOU, China - AIFU Inc. (NASDAQ:AIFU), an AI-driven financial services platform in China with a current market capitalization of $19.12 million and annual revenue of $247.82 million, announced Monday it has entered into a definitive share purchase agreement with investors for a private placement that will generate approximately $31.6 million in gross proceeds. According to InvestingPro, the company maintains a FAIR financial health score of 1.96.

Under the agreement, AIFU will issue 10 million Class A ordinary shares at $3.156 per share and a warrant to purchase up to 20 million additional Class A ordinary shares. Half of the warrant will be exercisable at 200% of the purchase price, with the remaining half exercisable at 250%.

Upon closing of the transaction, which is expected by the end of July 2025, AIFU will have 15,870,271 ordinary shares outstanding, consisting of 13,370,271 Class A ordinary shares and 2,500,000 Class B ordinary shares.

The two largest investors in the transaction are expected to hold approximately 24.6% and 19.5% of the company’s total outstanding shares, respectively, representing 1.5% and 1.2% of the total voting power.

The Class A ordinary shares are being issued in a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933, and have not been registered under the Securities Act or applicable state securities laws.

AIFU intends to use the proceeds to support the execution of its business plans, for general working capital, and for other corporate purposes, according to the company’s press release statement. The company’s healthy current ratio of 2.5 and projected revenue growth of 66% for FY2025 suggest strong operational potential. For deeper insights into AIFU’s financial outlook and detailed analysis, check out the comprehensive Pro Research Report available on InvestingPro, which provides expert analysis on over 1,400 US-listed companies.

Founded in 1998, AIFU provides services to connect financial institutions, service providers, agents, and independent insurance intermediaries in China. The stock has seen significant volatility, with a year-to-date return of -84.33%, highlighting the importance of thorough research using tools like InvestingPro’s advanced metrics and analysis capabilities.

In other recent news, AIFU Inc. has regained compliance with Nasdaq’s minimum bid price requirement, as confirmed by a recent SEC filing. Previously, the company faced a breach of Nasdaq Listing Rule 5450(a)(1) due to its American depositary shares falling below the $1.00 minimum bid price. To address this, AIFU terminated its American Depository Receipt program and listed its Class A ordinary shares directly on Nasdaq. Additionally, AIFU Inc. announced a reverse stock split, consolidating every 400 ordinary shares into one new ordinary share. This move coincides with the termination of its ADR facility, affecting shareholders by altering the number of shares held. The reverse split is expected to proportionally increase the trading price of the company’s shares. AIFU’s Class A ordinary shares are anticipated to begin trading on a post-reverse split basis on Nasdaq. The company has been issued new ISIN and CUSIP numbers for its consolidated shares. These developments were disclosed in press release statements filed with the SEC.

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