Hapag-Lloyd shares plunge after profit slide and narrowed full-year forecast
DIH Holding US, Inc. (NASDAQ:DHAI), a company with a current market capitalization of $7.41 million and annual revenue of $69.57 million, announced Tuesday that it entered into a common shares purchase agreement with an investor to sell up to the lesser of $22 million in aggregate gross purchase price or 10,458,031 shares of its Class A common stock through a private placement. The agreement was executed on October 15. According to InvestingPro analysis, the company’s stock has seen significant pressure, falling over 90% year-to-date.
According to a statement based on a SEC filing, the shares will be issued at a price equal to 94% of the lowest daily volume weighted average price (VWAP) over the three trading days preceding each purchase, including the date of the purchase. The offering is being conducted under exemptions from registration pursuant to Section 4(a)(2) of the Securities Act of 1933 and Rule 506(b) of Regulation D. InvestingPro data indicates the company is currently trading below its Fair Value, with a concerning current ratio of 0.51, suggesting potential liquidity challenges.
As part of the agreement, DIH Holding US will issue the investor 100,000 common shares and a pre-funded warrant to purchase an additional 100,000 common shares as a commitment fee. These securities must be returned if the company’s Nasdaq Hearings Panel Appeal is unsuccessful.
The company stated it intends to use the net proceeds from the offering for working capital and general corporate purposes.
DIH Holding US has agreed to file a registration statement with the Securities and Exchange Commission within 45 trading days to cover the resale of the shares issued in the offering. The purchase agreement will terminate automatically on the first day of the month following the 36-month anniversary of the effective date of the registration statement, unless ended earlier under its terms.
The securities to be sold in this transaction have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption.
DIH Holding US, Inc. is listed on the Nasdaq Stock Market under the ticker symbol DHAI. This information is based on a press release statement and the company’s SEC filing.
In other recent news, DIH Holding US, Inc. has faced several challenges regarding its Nasdaq listing status. The company received formal notification from Nasdaq about potential delisting due to unresolved deficiencies, including its market value of publicly held shares falling below the required $15 million minimum. Additionally, DIH Holding US has not met the minimum bid price requirement of $1.00 per share, leading to another delisting notice. The company was also informed of its failure to meet the $50 million market value of listed securities threshold. In response to these challenges, DIH Holding US plans to appeal the delisting notices. Meanwhile, the company has made strategic changes to its Board of Directors, appointing Barrett Mooney, Ph.D., and Scott R. Burell, both of whom bring significant industry experience. Mooney has a background in aerospace and defense, while Burell is a healthcare finance veteran. These developments highlight ongoing efforts by DIH Holding US to navigate its current financial and compliance challenges.
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