EZGO Technologies Slumps After $8.5M Equity Offering

EZGO Technologies Ltd EZGO has entered into a definitive securities purchase agreement, dated as of June 5, 2023, with certain purchasers, each an unrelated third party to the company.
The purchasers agreed to subscribe for and purchase an aggregate of 10 million shares at $0.85 per unit.
Each unit consists of one ordinary share and one warrant to purchase one ordinary share at a price of $1.20 per share.
The warrants will become exercisable for cash or on a cashless basis upon issuance and will expire one year after the issuance date.
The company expects to receive net proceeds of approximately $8.47 million from the issuance and sale of the units.
EZGO intends to use the net proceeds for working capital and general business purposes.
Price Action: EZGO shares are trading lower by 10.5% at $1.36 in premarket on Tuesday.