Business
Farmmi Announces Pricing of $1.0 Million Registered Direct Offering
LISHUI, China, Aug. 23, 2024 /PRNewswire/ -- Farmmi, Inc. ("Farmmi" or the "Company") (Nasdaq: FAMI), an agriculture products supplier in China, today
About this update from Farmmi, Inc. Ordinary Shares
[{"type":"text","content":"LISHUI, China, Aug. 23, 2024 /PRNewswire/ -- Farmmi, Inc. (\"Farmmi\" or the \"Company\") (Nasdaq: FAMI), an agriculture products supplier in China, today announced that it has entered into a securities purchase agreement with certain institutional investors to purchase 3,433,167 ordinary shares of the Company (the \"Ordinary Shares\") in a registered direct offering. In a concurrent private placement, the Company also agreed to issue and sell to the investors Series A warrants to purchase up to 3,433,167 Ordinary Shares. The combined effective offering price for each Ordinary Share and accompanying Series A warrant is $0.30. The Series A warrants are immediately exercisable, expire five years from issuance, and have an initial exercise price of $0.75 per share, which exercise price is subject to standard adjustments for dividends, splits and similar events and is also subject to adjustment for certain dilutive issuances, upon reset following certain capitalization events (including a reverse stock split) and upon reset on a Reset Date (as defined in the Series A warrant). The gross proceeds to the Company from the registered direct offering and concurrent private placement are estimated to be approximately $1.0 million before deducting the placement agent's fees and other estimated offering expenses payable by the Company.\n\nThe offering is expected to close on or about August 26, 2024, subject to the satisfaction of customary closing conditions.\nMaxim Group LLC is acting as the sole placement agent in connection with the offering.\nThe Ordinary Shares are being offered pursuant to a shelf registration statement on Form F-3 (File No. 333-280348), which was declared effective by the U.S. Securities and Exchange Commission (the \"SEC\") on June 27, 2024. The offering of Ordinary Shares will be made only by means of a prospectus supplement that forms a part of such registration statement. The Series A warrants to be issued in the concurrent private placement and the Ordinary Shares issuable upon exercise of such warrants were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the \"Act\"), and Regulation D promulgated thereunder and have not been registered under the Act or applicable state securities laws.\nThis press release does not constitute an offer to sell or the solicitation o...