Inno Holdings enters $6 million standby equity purchase agreement

Published 08/07/2025, 22:44
Inno Holdings enters $6 million standby equity purchase agreement

Inno Holdings Inc. (NASDAQ:INHD), currently trading at $1.42 per share with a market capitalization of $8.57 million, announced it has entered into a Standby Equity Purchase Agreement with a group of investors, effective Friday. The company’s stock has experienced significant volatility, falling about 75% over the past year according to InvestingPro data. According to a statement in the company’s SEC filing, the agreement allows Inno Holdings to issue and sell up to $6 million worth of its common stock to the investors, subject to certain conditions.

Under the terms of the agreement, Inno Holdings may, at its discretion, sell shares to the investors from time to time by delivering a written notice. The minimum amount for each share sale, referred to as an “Advance,” is set at $500,000. The purchase price per share will be equal to 40% of the minimum price, with the company having the option to adjust this amount between 20% and 40% of the minimum price.

The agreement includes a restriction that prevents any investor from holding more than 9.99% of the company’s outstanding common stock as a result of an advance, unless otherwise agreed in writing. Any portion of an advance that would exceed this limit will be automatically withdrawn.

The agreement will terminate automatically on the earlier of three years from its effective date or when the investors have paid the full $6 million commitment. Inno Holdings also retains the right to terminate the agreement with five trading days’ written notice, provided there are no outstanding advance notices.

The company stated that net proceeds from any share sales under the agreement will depend on the frequency and prices of such sales and are expected to be used for working capital and general corporate purposes. As of the date of the filing, Inno Holdings has not issued any advance notices or sold any shares under the agreement.

This information is based on a press release statement included in an SEC filing.

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