Bon Natural Life announces $12 million offering

XI’AN, China - Bon Natural Life Limited (NASDAQ:BON), a provider of bio-ingredient solutions for the health and personal care industries with a current market capitalization of $6.01 million, has announced the pricing of a $12 million securities offering. According to InvestingPro analysis, the company currently trades at a notably low Price/Book ratio of 0.14x and appears undervalued based on Fair Value estimates. The company is offering units that include Class A ordinary shares or pre-funded warrants, alongside Series A and Series B Warrants with different exercise prices.

The ordinary units are priced at $1.44 each, while the pre-funded units are being offered at $1.439. The Series A Warrants have an exercise price of $1.44 per share, and the Series B Warrants are set at $2.16 per share. Both types of warrants become exercisable immediately and will expire three years from their initial exercise date.

Bon Natural Life intends to use the net proceeds from this offering to expand its sales network, enhance research and development, increase production capacity, and for working capital and other general corporate purposes. This capital raise comes at a crucial time, as InvestingPro data shows the company is quickly burning through cash, despite maintaining a healthy current ratio of 2.42x. The offering is expected to close on or about March 18, 2025, subject to customary closing conditions.

Univest Securities, LLC is the sole placement agent for the offering. The securities are being offered pursuant to a registration statement previously filed with and declared effective by the Securities and Exchange Commission (SEC). The final prospectus related to the offering will be available on the SEC’s website.

This announcement includes forward-looking statements, which are based on current expectations and projections about future events. The company cautions that these statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. InvestingPro analysis highlights several risk factors, including the company’s significant debt burden and historically high stock price volatility. InvestingPro subscribers have access to 13 additional key insights about BON’s financial health and market performance.

The information provided in this article is based on a press release statement from Bon Natural Life Limited.

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