Lichen China Limited sets $3.4 million direct offering

XIAMEN, China - Lichen China Limited (NASDAQ:LICN), a provider of financial and taxation services with a current market capitalization of $5.37 million and impressive gross profit margins of 61%, has announced a registered direct offering of Class A ordinary shares and pre-funded warrants, expecting to raise approximately $3.4 million. The transaction, with shares priced at $0.08 each, is set to close around Wednesday, subject to customary conditions.

The offering includes the sale of 42,500,000 shares, with pre-funded warrants offered at the same price, minus the $0.001 exercise price per share. Univest Securities, LLC serves as the exclusive placement agent for the deal.

The offering is conducted under a shelf registration statement, effective since March 1, 2024, filed with the U.S. Securities and Exchange Commission (SEC). Details of the offering will be outlined in a final prospectus supplement and accompanying prospectus available on the SEC’s website.

Lichen China, with over 18 years in the industry, is recognized for its financial and taxation solutions, educational support, and software services under the "Lichen" brand in China. InvestingPro data reveals the company maintains a healthy balance sheet with more cash than debt, though its stock has experienced significant volatility in recent months. Subscribers can access 12 additional ProTips and detailed financial metrics on the platform.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction where such an offer, solicitation, or sale would be unlawful without registration or qualification under the securities laws of that jurisdiction. The prospectus supplement relating to the offering will be filed by the Company and available at the SEC’s website upon filing.

Investors are cautioned that certain statements in this announcement may be forward-looking and involve risks and uncertainties. Lichen China undertakes no obligation to update these statements in light of new information or future events.

The information provided is based on a press release statement from Lichen China Limited.

In other recent news, Lichen China Limited has planned to enhance its financial and taxation AI model by integrating the DeepSeek optimization framework. The integration is expected to boost the AI’s ability to manage complex financial and taxation tasks. With a solid financial performance, including a 24.86% revenue growth and gross profit margins of 60.71%, the company is well-positioned to fund this technological advancement. The completion of this integration is slated for the end of the second quarter of 2025.

In addition to the AI enhancement, Lichen China has also announced a definitive agreement for a direct offering involving the sale of 20 million Class A ordinary shares, or alternatively pre-funded warrants, at a price of $0.14 per share. This sale is projected to generate approximately $2.8 million in gross proceeds for the company, with Univest Securities, LLC named as the sole placement agent for the offering.

These are recent developments for Lichen China Limited. The company’s forward-looking statements reflect their projections and expectations for future business performance, which are subject to risks and uncertainties. As always, investors are advised to review factors that may affect the company’s future results in its registration statement and other SEC filings.

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