Business
Senmiao Technology Announces Closing of $5 Million Private Placement
CHENGDU, China, Nov. 11, 2021 /PRNewswire/ -- Senmiao Technology Limited ("Senmiao") (Nasdaq: AIHS), a financing and servicing company focused on the online
About this update from Senmiao Technology Limited
[{"type":"text","content":"CHENGDU, China, Nov. 11, 2021 /PRNewswire/ -- Senmiao Technology Limited (\"Senmiao\") (Nasdaq: AIHS), a financing and servicing company focused on the online ride-hailing industry in China as well as an operator of its own online ride-hailing platform, today announced that it has closed the previously announced private placement of a total of $5 million with certain institutional investors of its Series A Convertible Preferred Stock, which can be initially converted into shares of the Company's common stock at a conversion price of $0.68 per share, subject to adjustment. In addition, the Company issued certain warrants to the investors in this private placement to purchase up to 7,352,942 shares of common stock. The warrants have a term of five years and are exercisable at any time after six months and one day of the date of issuance at an exercise price of $0.82 per share. \nThe Company intends to use the net proceeds from the private placement to further accelerate the Company's business plan and fund any additional working capital needs.\nFT Global Capital, Inc. acted as the exclusive placement agent for the private placement.\nThe common stock underlying the Series A Convertible Preferred Stock (the \"Conversion Shares\") and the common stock underlying the warrants (the \"Warrant Shares\") described above have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (\"SEC\") or an applicable exemption from such registration requirements. The securities were offered only to accredited investors. Pursuant to a registration rights agreement (the \"RRA\") with the investors in connection with this offering, the Company has agreed to file with the SEC an initial registration statement to register the resale of the Conversion Shares and Warrant Shares no later than the 20th calendar day after the closing of the private placement. In addition, the Company shall use its best efforts to have such initial registration statement declared effective by the SEC as soon as practicable, which shall not be later than the 60th calendar day (or, if a full review by the SEC, the 110th calendar day) after the closing of the private placement, or 2nd business day after the date the Company is notified by the SEC that suc...