Business
Ebang International Announces Completion of Follow-on Public Offering and Exercise of Warrants for Approximately $72.4 Million in Gross Proceeds
HANGZHOU, China, Feb. 22, 2021 (GLOBE NEWSWIRE) -- Ebang International Holdings Inc. (Nasdaq: EBON, the “Company,” “we” or “our”), a blockchain technology
About this update from Ebang International Holdings Inc.
[{"type":"text","content":"HANGZHOU, China, Feb. 22, 2021 (GLOBE NEWSWIRE) -- Ebang International Holdings Inc. (Nasdaq: EBON, the “Company,” “we” or “our”), a blockchain technology company in the global market, today announced the completion of the previously announced offering by and between the Company and several institutional investors (the “Investors”), and the sale of an additional 5.2 million units (“Units,” each, a “Unit”) for a total of 19.2 million Units, all of which were registered pursuant to the Registration Statement on Form F-1 (File No. 333-252804), as amended by Form F-1MEF (File No. 333-252979)(the “Registration Statement”). The Company intends to use the net proceeds from the offering primarily for research, development, production and sales of ASICs and equipment related to cryptocurrencies, expansion of its cryptocurrency mining business as well as establishment and operation of cryptocurrency mining farms, and general corporate purposes, which may include working capital needs and other corporate uses. The Company also announced that on February 22, 2021, it entered into inducement agreements with the Investors to induce them to exercise certain warrants to purchase up to an aggregate of 13.6 million Class A ordinary shares issued by the Company as part of the prior two offerings during November 2020 to February 2021 at an exercise prices of $5.50 and $5.25 respectively. The gross proceeds to the Company from the exercise of the warrants are expected to be approximately $72.4 million, prior to deducting solicitation agent fees and estimated offering expenses. In consideration for the immediate exercise of the warrants for cash, the Investors will receive new, unregistered warrants to purchase the Company’s Class A ordinary shares (the “New Warrants”) in a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”). The New Warrants will be exercisable for an aggregate of up to 13.6 million Class A ordinary shares, at an exercise price of $11.06 per share, which have a term of exercise equal to five years. The Company has agreed to file a registration statement with the SEC covering the resale of the Class A ordinary shares issuable upon exercise of the New Warrants. Univest Securities, LLC is acting as the representative of the solicitation agents including Lake Street Capital Markets, L...