Business
Senmiao Technology Announces Entry into Agreements for Registered Direct Public Offering of $6.0 Million of Common Stock and Warrants
CHENGDU, China, June 18, 2019 /PRNewswire/ -- Senmiao Technology Limited (Senmiao) (NASDAQ: AIHS), an operator of an online lending marketplace connecting
About this update from Senmiao Technology Limited
[{"type":"text","content":"CHENGDU, China, June 18, 2019 /PRNewswire/ -- Senmiao Technology Limited (Senmiao) (NASDAQ: AIHS), an operator of an online lending marketplace connecting Chinese investors with individual and small-to-medium-sized enterprise borrowers, and a provider of automobile transactions and related services in China, announced today that it has entered into a securities purchase agreement with six (6) accredited investors with respect to a registered direct public offering of approximately $6.0 million of shares of common stock at a price of $3.38 per share. The Company will issue an aggregate of 1,781,361 shares of common stock to such accredited investors. The Company will also issue to the accredited investors Series A warrants to purchase up to 1,336,021 shares of common stock at an exercise price of $3.72 per share. Such warrants will have a term of four (4) years from the date of issuance. On the six (6)-month anniversary of the initial issuance date of the Series A warrants, if the average volume weighted average price during the ten (10) trading days prior to such anniversary (\"New Exercise Price\") is less than the $3.72 exercise price, then such exercise price shall have one-time price adjustment equal to the New Exercise Price; provided, however, in no event, shall the New Exercise Price be less than $1.50 per share. The Series A warrants will also be subject to price adjustments for future discounted issuances below the exercise price. Additionally, the accredited investors will also receive pre-funded Series B warrants to purchase shares of common stock. Such warrants will have a term of one (1) years from the date of issuance. If on the 50th day after the closing date of the transaction, the closing market price of the Company's common stock is less than $3.38, the investors shall have the right to exercise the Series B warrants for nominal consideration. The number of shares of common stock to be issued to the investors upon exercise of the Series B warrants shall be determined based on a 20% discount to the market price of the Company's common stock immediately preceding such date, but in no event, shall the aggregate number of shares of common stock underlying the Series B warrants be greater than 1,116,320 shares of common stock.\nThe completion of the offering is expected to occur on or about June 19, 2019, subject to...