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Investing.com -- Maase Inc. (NASDAQ:MAAS) stock dropped 12.2% after the company announced a definitive share purchase agreement for a private placement expected to generate approximately $21 million in gross proceeds.
The agreement involves the issuance of 10 million Class A ordinary shares at $2.08 per share, along with warrants to purchase up to 20 million additional Class A ordinary shares. The warrants are structured in two tranches, with half exercisable at 200% of the purchase price and the remaining half at 250%.
Upon closing of the transaction, which is expected by the end of July 2025, Maase will have approximately 25.9 million ordinary shares outstanding. The largest investor in the transaction is expected to hold about 19.29% of the company’s total outstanding ordinary shares, representing just 0.73% of the total voting power due to Maase’s dual-class share structure.
The company plans to use the proceeds to support its business plans, augment working capital, and for other general corporate purposes. The shares are being issued in a private placement under Section 4(a)(2) of the Securities Act of 1933 and have not been registered under the Securities Act or applicable state securities laws.
The significant stock decline suggests investors may be concerned about potential dilution from the share issuance and the additional warrants that could be exercised in the future.
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