SINGAPORE - Webuy Global Ltd. (NASDAQ:WBUY), a Southeast Asian e-commerce company currently trading at $0.23 per share, has announced a securities purchase agreement with institutional investors for a registered direct offering of roughly 21 million Class A ordinary shares, at a price of $0.1756 per share. The transaction is estimated to yield gross proceeds of about $3.7 million, before deductions for the placement agent's fees and other estimated offering expenses. According to InvestingPro data, this funding comes as the company faces significant cash burn challenges, with negative free cash flow of -$12.12 million in the last twelve months.
The offering is expected to close on Tuesday, subject to customary closing conditions. D. Boral (OTC:BOALY) Capital LLC is serving as the exclusive placement agent for the offering. The shares are being offered pursuant to a previously filed and effective shelf registration statement and an accompanying prospectus, with a prospectus supplement to be filed with the SEC prior to closing. Despite challenging market conditions that have led to a 73% decline in share price over the past year, InvestingPro analysis shows promising revenue growth of 21.3% in the last twelve months. Subscribers can access 13 additional ProTips and comprehensive financial metrics to better evaluate this investment opportunity.
Webuy's approach combines advanced AI technologies with a community-driven 'group buy' model. It also offers AI-powered travel solutions, aiming to become the leading e-commerce and travel platform in Southeast Asia. The company's AI Travel Consultant provides personalized travel planning and real-time support, with the goal of enhancing the shopping and travel experience for its users. The company generated revenue of $65.44 million in the last twelve months, though with a modest gross profit margin of 10.7%.
The company cautions that this press release contains forward-looking statements that are not guarantees of future performance and involve certain risks and uncertainties. These statements reflect the company's current expectations as of the date of the press release, and Webuy does not undertake any obligation to update these statements in the future, except as required by law. With an overall Financial Health score of 2.16 (Fair) according to InvestingPro, investors should carefully consider both risks and opportunities in this volatile market.
This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The offering is made only by means of a prospectus supplement and accompanying prospectus, which may be obtained from the SEC's website or directly from the placement agent.
In other recent news, Southeast Asian e-commerce company Webuy Global Ltd. has made significant strides in NVIDIA (NASDAQ:NVDA)'s AI Accelerator Program. This marks a key development in Webuy's ongoing strategy to leverage advanced AI to enhance its services and customer value. The program, backed by Singapore's Economic Development Board, Tribe, and Digital Industry Singapore, provides participants with access to NVIDIA's computing prowess and technical expertise.
Webuy's progression in the program underscores its dedication to embedding AI into its platform. The company utilizes AI across various facets of its operations, including personalized travel planning, predictive demand analytics, and enriched social interaction for community shopping and travel discussions. Webuy's commitment to AI integration aligns with its objective to broaden its footprint in Southeast Asia and deliver innovative solutions that respond to evolving market needs.
According to InvestingPro's analysis, the company maintains a moderate debt level, with a debt-to-equity ratio of 0.76. However, it grapples with a gross profit margin of 10.7% and a significant cash burn rate. While the company has not disclosed specific details regarding the impact of this advancement on its financial performance or market position, these recent developments reflect Webuy's commitment to AI-driven solutions.
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