United States, Feb 12, 2021 /AlexaBlockchain/ – China based blockchain company, SOS Limited, will raise $110 million to fund its planned blockchain-based security and insurance technology business as well as for working capital and general corporate use.
The company has entered into a securities purchase agreement with certain accredited investors to purchase $110.0 Million worth of its American Depositary Shares (“ADS”) and warrants in a registered direct offering.
Under the terms of the securities purchase agreement, the Company has agreed to sell 22,000,000 million ADSs and warrants to purchase 16,500,000 million ADS. The warrants will be exercisable immediately upon the date of issuance and have an exercise price of $5.00. The warrants will expire five years from the date of issuance.
The purchase price for one ADS and one corresponding warrant will be $5.00. The determination of the purchase price was based on the average of the Company’s closing stock price over the past five trading days. The gross proceeds to the Company from the registered direct offering are estimated to be $110.0 Million before deducting the placement agent’s fees and other estimated offering expenses. The registered direct offering is expected to close on or about February 17, 2021, subject to the satisfaction of customary closing conditions.
Maxim Group LLC is acting as sole placement agent in connection with this offering.