Shares of Code Chain New Continent Limited (NASDAQ: CCNC) dropped on Thursday after the firm declared the pricing of the registered direct offering. CCNC disclosed that it has signed a buying agreement with some institutional investors to acquire a total of 4,166,666 shares of the firm’s common stock and permits to buy a total of 1,639,362 shares of common stock in a registered direct offering.
Furthermore, the deal will also provide permits to buy the total of 2,527,304 shares of common stock in the same private settlement. The joint per share buying price will be $6.00 per Share. As per the deal, the Registered Warrants will be promptly utilized. These permits will expire 5 years after the date of grant and will have a usage price of $6.72 per share, dependent on various modifications in accordance with the conditions specified in the Registered Warrants.
Shares of Code Chain New Continent Limited (NASDAQ: CCNC) plunged 26.32% during the trading session of Thursday. In the past 52-weeks of trading, this firm's share changed from a low point around $0.65 to quickly over $6.99. Its shares rose 888.43% and $40.45% from its 52-week low and its 52-week high, respectively. It has a total market capitalization of $204.06 million at the time of writing.
On the other hand, the Unregistered permits will be first usable on the earlier of six months from the grant date or the date that the firm gets investors authorization to dump off all of the securities in the registered direct offering and same private settlement if such permission is achieved. The Unregistered Warrants will expire 5.5 years after the date of grant and will have a usable price of $6.72 per share, depending on the modifications in accordance with the conditions specified in the Unregistered Warrants.
It has been predicted that the profit from the offering will be $25 million before subtracting the agent charges and other expenditures. The firm is intending to utilize the profit from the offering for operating capital and general corporate objectives. The closure of the deal is likely to take place on or about February 22, 2021, relied on the fulfillment of the traditional closure conditions.