Street Calls of the Week
BEIJING - Cheer Holding, Inc. (NASDAQ:CHR) has priced a best-efforts public offering expected to raise approximately $8.5 million in gross proceeds, the company announced Wednesday. According to InvestingPro data, the company currently maintains impressive gross profit margins of 72% and holds more cash than debt on its balance sheet.
The offering consists of 12,686,565 units priced at $0.67 each, near the stock’s 52-week low of $0.65. Each unit includes one Class A ordinary share (or a pre-funded warrant), one Series A warrant, and one Series B warrant to purchase additional Class A shares. InvestingPro analysis indicates the stock is currently undervalued, with 14 additional key insights available to subscribers.
Both warrant series will have an exercise price of $0.7035 per Class A share and will be exercisable from issuance until one year later. The Series B warrant also includes a zero exercise price option allowing holders to receive 5.1235 Class A shares for each warrant exercised.
Univest Securities, LLC is serving as the sole placement agent for the offering, which is expected to close around October 2, 2025, subject to customary closing conditions.
The company intends to use the net proceeds for general working capital and corporate purposes, including sales and marketing expenses for user acquisition, according to the press release statement.
Cheer Holding describes itself as a provider of mobile internet infrastructure and platform services, developing technologies that integrate blockchain, cloud computing, extended reality, and digital twin capabilities. The company’s financial health score is rated as GOOD by InvestingPro, with a current ratio of 8.29 indicating strong liquidity. Discover comprehensive analysis in the Pro Research Report, available along with detailed metrics for 1,400+ US stocks.
The securities are being offered pursuant to a registration statement on Form F-1 that was declared effective by the Securities and Exchange Commission on September 30, 2025.
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