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Senmiao Technology Ltd (NASDAQ:AIHS) disclosed Friday that it has entered into a securities purchase agreement with accredited investors for a registered direct offering of its common stock and pre-funded warrants, according to a press release statement and a filing with the Securities and Exchange Commission.
The agreement provides for the issuance of 1,350,000 shares of common stock and pre-funded warrants to purchase 905,000 shares, each at a purchase price of $1.26 per share. The total gross proceeds from the offering are expected to be approximately $2.8 million before deducting offering fees and expenses. The closing of the sale is anticipated to occur on or about Monday, subject to customary closing conditions.
Senmiao Technology stated it intends to use the net proceeds for general corporate purposes and working capital.
The company also agreed to issue, in a separate private placement, warrants to purchase up to 4,510,000 shares of common stock. These warrants will have a term of five and a half years and an exercise price of $1.26 per share, becoming exercisable immediately upon issuance, subject to stockholder approval. Senmiao Technology plans to hold a special meeting of stockholders within 45 days following the closing of the share sale to seek this approval.
The warrants and the shares underlying them will be offered under exemptions from registration provided by Section 4(a)(2) and/or Rule 506(d) of Regulation D of the Securities Act. If stockholder approval is obtained, the company will file a registration statement to register the resale of the warrant shares within 30 days after the special meeting.
The shares in the direct offering are being offered pursuant to an effective shelf registration statement on Form S-3, declared effective by the SEC on September 29, 2023.
This report is based on a press release statement and the company’s recent SEC filing.
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