OSR Holdings announces $80 million equity agreement with White Lion

BELLEVUE, WA – OSR Holdings, Inc. (NASDAQ:OSRH), a medical instruments and apparatus manufacturer, has entered into a significant equity financing agreement with White Lion GBM Innovation Fund, according to a recent 8-K filing with the Securities and Exchange Commission. The company, currently trading at $3.32 and down over 71% year-to-date according to InvestingPro data, is seeking additional funding amid challenging market conditions. The deal, finalized on Monday, provides OSR Holdings with the option to sell up to $80 million of its common stock to White Lion.

Under the terms of the agreement, OSR Holdings can direct White Lion to purchase shares at its discretion, subject to certain conditions and limitations. The purchase price for shares under a Rapid Purchase Notice will be determined by the average of the three lowest trading prices on the date of the notice, while a VWAP Purchase Notice price will be based on a formula involving the lowest daily volume-weighted average price during a specific period.

The maximum purchase obligation for White Lion under a single notice is capped at $2 million, with additional restrictions based on trading volume and stock price. The agreement is set to automatically terminate on December 31, 2026, or in the event of bankruptcy or similar proceedings involving OSR Holdings.

As part of the arrangement, OSR Holdings has also agreed to issue shares to White Lion worth $800,000 based on the closing price of the common stock prior to the effectiveness of the resale registration statement or upon White Lion’s request.

In conjunction with the stock purchase agreement, a registration rights agreement was also signed, requiring OSR Holdings to file a resale registration statement with the SEC within 30 days following the closing of the Business Combination. This statement will cover the resale of the maximum number of shares of common stock allowed under SEC rules.

The move to secure additional funding through White Lion will provide OSR Holdings with financial flexibility to support its business operations. With an InvestingPro Financial Health Score of 1.3, labeled as WEAK, this financing could be crucial for the company’s future. The company’s stock (NASDAQ:OSRH) and warrants (NASDAQ:OSRHW) are listed on The Nasdaq Stock Market LLC, with average daily trading volume reaching 1.77 million shares over the past three months.

This financial maneuver is based on a press release statement and provides a glimpse into the strategic financial planning of OSR Holdings as it navigates the competitive medical device industry. The stock has experienced significant volatility, trading between $2.60 and $13.40 over the past 52 weeks. For deeper insights into OSR Holdings’ financial health and growth prospects, including exclusive ProTips and detailed financial metrics, visit InvestingPro.

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