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In a recent filing with the U.S. Securities and Exchange Commission, Texas-based Inno Holdings Inc. reported the successful sale of equity securities, raising approximately $3.5 million.
The company, which operates in the steel pipe and tubes sector, disclosed the unregistered sale of common stock to non-U.S. investors as part of a private placement. According to InvestingPro data, this funding comes at a crucial time as the company has been quickly burning through cash, with an EBITDA of -$3.26 million in the last twelve months.
The initial sale took place on November 20, 2024, with Inno Holdings issuing 277,083 shares at $4.80 per share, resulting in gross proceeds of around $1.33 million. These funds are earmarked for working capital and general corporate purposes. The shares, referred to as the Initial Issuance Shares, were fully paid and non-assessable upon issue. Notably, the offering price of $4.80 represents a premium to the current trading price of $4.63, with the stock having declined over 65% year-to-date.
Following the initial transaction, on December 13, 2024, the company completed a subsequent issuance of 452,084 shares at the same purchase price of $4.80 per share. This brought in an additional $2.17 million. The Subsequent Issuance Shares were issued to non-U.S. persons, as defined under Regulation S of the Securities Act of 1933, and were therefore exempt from registration.
Inno Holdings initially entered into the Securities Purchase Agreement on November 13, 2024, with nine non-U.S. investors, setting the stage for the private placement of the 729,167 shares of common stock. The closing of this agreement was documented in two parts, with the final closure occurring on the date of the subsequent issuance.
This financial move comes as part of Inno Holdings' efforts to bolster its financial position and support its corporate initiatives. While InvestingPro analysis shows the company holds more cash than debt on its balance sheet, its overall financial health score remains weak at 1.6 out of 5.
In other recent news, Texas-based Inno Holdings Inc. has successfully closed a private placement offering, raising approximately $2.475 million for working capital and general corporate purposes. The offering involved the issuance of 729,167 shares at a price of $4.80 per share.
The company also announced significant changes to its executive team and board of directors, accepting the resignations of Tianwei Li as CEO and Hongbo Li as a director, while appointing Mengshu Shao and Yongbo Mo as new directors, and Ding Wei as the new CEO, Chairman, and Director.
In an effort to maintain compliance with Nasdaq's listing rules, Inno Holdings enacted a one-for-ten reverse stock split. This strategic decision consolidates every ten pre-split shares of issued and outstanding common stock into one post-split share without altering the number of authorized shares or the par value of the common stock.
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