China Xiangtai Food To Raise $16.5M Via Equity Offering

China Xiangtai Food Co Ltd PLIN has entered into a securities purchase agreement with certain investors to sell $16.5 million of its ordinary shares in a registered direct offering. The company has agreed to sell 17.18 million ordinary shares in a direct offering and warrants to purchase 17.18 million ordinary shares in a concurrent private placement.

• The warrants will be exercisable 60 days from the date of issuance and have an exercise price of $1.008, and will expire five years from the date of issuance.
• The purchase price for one ordinary share and one corresponding warrant will be $0.96.
• The company plans to use net proceeds for product research and development, marketing and business development, new business assessment and acquisition, talent acquisition and training, and working capital and general business purposes.
• The company expects to close the offering on or about November 24, 2021.
• Price Action: PLIN shares are trading higher by 7.25% at $1.46 on the last check Monday.