Nisun Reveals Use Of Proceeds From ~$77 Million Underwritten Public Offering, Invests ~$32 Million In 2 Subsidiaries

Nisun International Enterprise Development Group Co., Ltd NISN announced updates on its use of proceeds from its December 2021 underwritten public offering of approximately $77 million of its Class A common shares and pre-funded warrants to purchase Class A common shares.

Since the completion of the offering, the company has invested approximately $32 million of the net proceeds into its two subsidiaries, NiSun Ocean (Qingdao) Supply Chain Investment Co., Ltd. ("Nisun Ocean") and Zhumadian NiSun Supply Chain Management Co., Ltd. ("Nisun ZMD") for general corporate purposes, repaid approximately $1 million of related party debt, paid approximately $0.5 million in professional fees and held the remainder in its accounts for potential business and operational opportunities.

More detailed allocations are as follows:

Nisun Ocean has received investments of approximately $25 million and has used approximately $3 million primarily in electronics purchases under its strategic cooperation with Shanghai Bailian Group ("Bailian"). Nisun facilitated merchandise purchases from suppliers with payment terms desirable to Bailian who can access working capital quickly and at a lower cost. Nisun Ocean earned supply chain solution service fees when Bailian received their financings. The balance of the investment remains in Nisun Ocean for future operations.

Nisun ZMD has received approximately $7 million investments, nearly all of which has been used to purchase household products from a major online retailer in China for Nisun ZMD's strategic cooperation with Beijing Zhiyuan Zhonglian Industrial Co., Ltd ("Zhiyuan Zhonglian"). Zhiyuan Zhonglian also provided a deposit of approximately $1.6 million to secure its performance of its payment obligations with respect to the household products purchased for its account.

"We are pleased to discuss our recent business development activity," Mr. Xiaoyun Huang, Chairman and Chief Executive Officer of Nisun International, commented. "The company will continue to leverage its advantages and utilize its capital proceeds to invest and improve the supply chain dynamic while expanding scale. We remain committed to providing our clients with effective, high-quality supply chain solutions."

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