BEIJING - Haoxi Health Technology Limited, a provider of online marketing solutions based in Beijing, has announced the pricing of its follow-on public offering. The offering consists of 4 million units at $3.00 each, aiming to raise total gross proceeds of $12 million before deductions for underwriting discounts and other expenses.
Each unit in the offering comprises one share of Class A Ordinary Share or one pre-funded warrant to purchase such a share, along with two series of warrants (Series A and Series B) to purchase additional Class A Ordinary Shares. The Series A warrants are exercisable immediately, with an initial exercise price of $3.00 per share, which will adjust to $0.60 on the Series B Exercise Date. The Series B warrants, exercisable at $0.0001 per share, will become available 16 days after the closing date.
The offering is conducted on a firm commitment basis, with EF Hutton LLC serving as the sole bookrunner. EF Hutton has been granted an option to purchase up to an additional 600,000 units to cover over-allotments.
The closing of the offering is expected to occur around September 20, 2024, subject to customary closing conditions. The proceeds are intended for working capital, corporate purposes, technology acquisitions or investments, and hiring experienced employees.
The offering is made by means of a prospectus, following an effective registration statement filed with the U.S. Securities and Exchange Commission (SEC). Copies of the final prospectus are available through EF Hutton or the SEC's website.
Haoxi Health Technology specializes in serving the healthcare industry with online marketing solutions, particularly in short video marketing on popular Chinese platforms. The offering details are based solely on the company's press release statement.
InvestingPro Insights
Haoxi Health Technology Limited, amid its recent follow-on public offering announcement, shows a mix of financial health and market challenges according to InvestingPro data. With a market capitalization of $96.72 million, the company has demonstrated a remarkable revenue growth of 137.58% over the last twelve months as of Q2 2024. This growth is further underscored by an even more impressive quarterly revenue growth of 156.51% for the same period.
Despite these strong growth figures, the company's P/E ratio stands at a high 84.87, which adjusts to 75.39 when looking at the last twelve months as of Q2 2024. This may suggest that the market has high expectations for Haoxi's future profitability. The PEG ratio, which measures the relative value of the stock based on the anticipated growth rate, is at 0.81—indicating potential undervaluation if the company can sustain its current growth trajectory.
InvestingPro Tips highlight the importance of considering both the P/E and PEG ratios in conjunction with each other when evaluating a company's stock. For Haoxi, the P/E ratio might seem steep, but the PEG ratio could imply that the company's earnings growth rate justifies its current valuation. Investors should note that the price has recently dipped to $3.00, which is only 28.3% of the 52-week high, potentially offering a more attractive entry point. For those looking to delve deeper into the company's prospects, InvestingPro offers additional tips, with a total of 8 more tips available on their platform to aid in investment decisions.
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