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Investing.com -- Mingzhu Logistics Holdings Limited (NASDAQ:YGMZ) stock plunged 84.3% on Tuesday after the logistics provider announced a registered direct offering that would significantly dilute existing shareholders.
The company entered into a definitive securities purchase agreement with institutional investors for the sale of 8 million units priced at $1.00 each. Each unit consists of one ordinary share or a pre-funded warrant, plus one common warrant. The warrants will have an exercise price of $1.00 per share and will expire six months after issuance.
The offering is expected to generate approximately $8 million in gross proceeds before deducting placement agent fees and other expenses. Univest Securities is serving as the sole placement agent for the transaction, which is anticipated to close around November 26, 2025, subject to customary closing conditions.
Mingzhu Logistics describes itself as an "elite provider of logistics and transportation services to businesses." The company’s shares experienced the dramatic selloff as investors reacted to the potential dilution from the new share issuance.
The pre-funded warrants in the offering will have an exercise price of $0.128 per share, which represents the par value of the company’s ordinary shares. The common warrants included in each unit will be immediately exercisable upon issuance.
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