Oriental Rise prices public offering of units at $0.4681 each

NINGDE, China - Oriental Rise Holdings Limited (NASDAQ:ORIS), a Chinese tea products supplier, announced Tuesday the pricing of its public offering of up to 14.8 million units at $0.4681 per unit on a best-efforts basis. The company, currently valued at $10.3 million, is trading near its 52-week low of $0.46. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimates.

Each unit consists of one ordinary share (or one pre-funded warrant) and one common warrant to purchase an additional ordinary share. The common warrants are immediately exercisable at $0.4681 per share and will expire in five years.

The offering, expected to close on July 23, 2025, aims to raise approximately $6.9 million in gross proceeds before deducting placement agent fees and other expenses.

According to the company’s statement, the proceeds will fund general corporate purposes, working capital, sales network expansion, and production capacity improvements, including equipment upgrades at manufacturing facilities. The company maintains strong financial health with a current ratio of 24.8 and holds more cash than debt on its balance sheet. InvestingPro subscribers can access 15+ additional financial health indicators and exclusive insights about ORIS’s performance.

The common warrants include provisions for exercise price adjustments, with reductions to 70% and 50% of the initial exercise price on the 5th and 10th trading days following the offering’s close. With each price adjustment, the number of issuable warrant shares will increase proportionally.

Maxim Group LLC is serving as the exclusive placement agent for the offering.

Oriental Rise, which trades on the Nasdaq under the ticker ORIS, describes itself as an integrated supplier of white and black tea products in mainland China with vertically integrated operations spanning cultivation, processing, and sales to wholesale distributors and retail customers. The company trades at a notably low Price/Book ratio of 0.15, with a P/E ratio of 5.26, suggesting potential value opportunity despite its recent stock price decline of over 90% in the past year.

The company noted that a registration statement relating to the securities was declared effective by the Securities and Exchange Commission on July 21, 2025.

In other recent news, Oriental Rise Holdings Limited has received a deficiency notification from Nasdaq. The notification was issued because the company’s ordinary shares traded below the $1.00 minimum bid-price requirement for 30 consecutive business days, from May 15 to June 27, 2025. This development is in violation of Nasdaq Listing Rule 5550(a)(2). The company is now required to address this issue to maintain its listing on the Nasdaq exchange. Investors will be closely monitoring how Oriental Rise plans to rectify this situation. Such notifications can impact investor confidence and the company’s future trading status. This is a crucial development for Oriental Rise as it navigates compliance with Nasdaq’s listing requirements.

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