Chijet Motor to raise $15 million in registered direct offering

NEW YORK - Chijet Motor Company, Inc. (NASDAQ:CJET) announced Wednesday it has entered into a definitive agreement with investors for the sale of 100 million Class A ordinary shares at $0.15 per share in a registered direct offering. The offering comes as the company faces significant financial challenges, with InvestingPro data showing a concerning 90% decline in share price over the past six months and a negative EBITDA of $77.8 million.

The company expects to raise approximately $15 million in gross proceeds from the transaction, which is scheduled to close on or about October 2, 2025, subject to customary closing conditions.

The offering includes options for pre-funded warrants in lieu of shares, with the purchase price being identical to the share price minus the exercise price of $0.003 per share.

Univest Securities, LLC is serving as the sole placement agent for the offering, which is being conducted pursuant to a shelf registration statement previously filed with and declared effective by the SEC on August 16, 2024.

Chijet Motor, which develops, manufactures, and sells both traditional fuel vehicles and new energy vehicles (NEVs), operates a manufacturing base in Jilin, China, and is constructing a factory in Yantai that will focus on NEV production.

The company stated in its press release that a final prospectus supplement and accompanying prospectus describing the offering terms will be filed with the SEC.

In other recent news, Chijet Motor Company, Inc. announced a significant development with a Memorandum of Understanding for a private placement offering of up to $1 billion. This marks a substantial increase from the previously announced $20 million placement, signifying a 50-fold expansion in committed capital. The funds are earmarked for the company’s strategic shift into the digital asset custody and storage market. In another strategic move, Chijet Motor has appointed Jason Miller as Chief Operating Officer. Miller is set to lead the company’s integration of major cryptocurrencies, including Bitcoin, Ethereum, and Solana, into its financial strategy. This initiative is part of Chijet’s broader plan to enhance its treasury management framework. These developments highlight Chijet’s focus on digital currency initiatives and infrastructure growth.

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