AirNet Technology Inc. (NASDAQ:ANTE), a micro-cap company with a market value of $6.54 million specializing in advertising services, has entered into a share purchase agreement with certain investors on Sunday. According to InvestingPro analysis, the company is currently trading near its Fair Value, with shares priced at $0.44. The agreement involves the sale of 15,070,000 ordinary shares at a price of $0.4675 per share, resulting in aggregate gross proceeds of approximately $7 million.
The transaction, which is not subject to the registration requirements of Section 5 of the Securities Act, is set to close on the first business day following the agreement date or another mutually agreed upon date, pending customary closing conditions. This capital raise comes at a critical time, as InvestingPro data shows the stock has declined by over 55% in the past six months, with the company facing liquidity challenges reflected in its current ratio of 0.67.
The Beijing-based company, formerly known as AirMedia Group Inc., clarified that this report on Form 6-K shall not be considered an offer to sell or a solicitation of an offer to buy any securities. Furthermore, the report is incorporated by reference into the company’s Registration Statement on Form F-3, as amended, which was initially filed on May 10, 2024.
This financial move by AirNet comes as part of its efforts to raise capital, with the shares being offered in a private transaction. The company’s decision to engage in this sale reflects its ongoing strategic financial management, aimed at bolstering its balance sheet. InvestingPro subscribers have access to 12 additional key insights about AirNet’s financial health and market position, essential for understanding the full impact of this capital raise.
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