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NEW YORK - Chijet Motor Company, Inc. (NASDAQ:CJET) announced Wednesday it has entered into a Memorandum of Understanding with institutional investors for a private placement offering of up to $1 billion, expanding from its previously announced $20 million placement on September 26. The announcement comes as the company faces significant financial challenges, with a market capitalization of just $3.33 million and a concerning current ratio of 0.19, according to InvestingPro data.
The 50-fold increase in committed capital will fund Chijet’s digital currency business initiatives, including development of infrastructure for digital asset custody and storage solutions, according to a company press release.
"This extraordinary vote of confidence from our investors validates our strategic vision and execution capability," said Melissa Chen, CEO of Chijet, in the statement.
The company, primarily known for manufacturing traditional fuel vehicles and New Energy Vehicles (NEVs) in China, appears to be pivoting toward the digital asset sector with this new funding arrangement.
Chijet operates a vehicle production facility in Jilin, China, and is constructing a factory in Yantai that will focus on NEV production upon completion.
The company’s announcement represents a significant shift in its business focus from automotive manufacturing to digital asset services, though specific details about implementation timelines or technology development plans were not disclosed in the statement.
In other recent news, Chijet Motor Company announced a $20 million private placement offering involving securities purchase agreements with non-U.S. institutional investors. The offering includes units priced at $0.15 per share, with each unit comprising one ordinary share and three warrants, exercisable at $0.18 per share over three years. Additionally, Chijet Motor completed an $8 million public offering of Class A ordinary shares and accompanying warrants, with Maxim Group LLC acting as the sole placement agent. This transaction involved 13,560,000 shares priced at $0.59 each, along with warrants for additional shares at the same exercise price.
Chijet Motor has also issued 640,850 shares to contingent value rights holders due to unmet performance targets from a previous business agreement. In another development, the company appointed Jason Miller as Chief Operating Officer to lead its digital currency integration strategy. Miller will manage plans to incorporate cryptocurrencies like Bitcoin, Ethereum, and Solana into the company’s balance sheet, with acquisitions expected to begin in the fourth quarter of 2025. These strategic moves highlight Chijet Motor’s recent initiatives to enhance its financial and operational strategies.
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