China SXT Pharmaceuticals Shares Plunge On $3.5M Equity Raise Issued At Steep Discount

Maker of traditional Chinese medicines, China SXT Pharmaceuticals Inc SXTC has priced the previously announced underwritten public offering of its ordinary shares and prefunded warrants, with gross proceeds of approximately $3.5 million.

• The offering includes 19.8 million shares at $0.18 per share, representing a whopping discount of almost 67% from the last close price of $0.58.
• Underwriters have an option to purchase 2.9 million shares, resulting in gross proceeds of approximately $4.1 million.
• The company will use the net proceeds for general corporate purposes, including working capital and other business opportunities. 
• The China-based company also announced that it develops and commercializes the Kuihuapan After-Soaking-Oral TCMP and Zhudanfen Directly-Oral TCMP products. 
• The Kuihuapan products can clear heat, calm the liver, dredge collaterals, and relieve pain. Its indications include dizziness, tinnitus, joint pain, hyperuricemia, gout, hypertension, and other symptoms. 
• The Zhudanfen products are suitable for sudden cough, asthma, fever, thirst, red eyes, throat obstruction, jaundice, diarrhea, dysentery, constipation, sores, carbuncle, swelling, and poison. 
• The company expects the annual output of both Kuihuapan and Zhudanfen to reach 300,000 bottles and achieve sales of about RMB 5 million during the fiscal year ending March 31, 2023.
• Price Action: SXTC shares are down 58.2% at $0.22 during the premarket session on the last check Tuesday.