Senmiao Technology Announces $6.5 Million Registered Direct Offering

Rhea-AI Summary

Senmiao Technology Limited (Nasdaq: AIHS) has announced a $6.5 million registered direct offering of its common stock priced at $1.175 per share. The offering includes warrants for an additional 5,531,916 shares at $1.05 each, valid for five years. The proceeds will be used to accelerate business operations and meet working capital needs. The transaction is expected to close on May 13, 2021, pending customary conditions. FT Global Capital, Inc. serves as the exclusive placement agent for this offering.

Positive

• Proceeds of $6.5 million intended for business acceleration and working capital.
• Offering includes warrants for additional funding potential.

Negative

• Dilution risk for existing shareholders due to the issuance of new common stock and warrants.

CHENGDU, China, May 11, 2021 /PRNewswire/ -- Senmiao Technology Limited ("Senmiao") (Nasdaq: AIHS), a financing and servicing company focused on the online ride-hailing industry in China as well as an operator of its own online ride-hailing platform, today announced that it has entered into a securities purchase agreement with certain institutional investors for a registered direct offering of approximately $6.5 million of its common stock, priced at-the-market under the Nasdaq rules at a price of $1.175 per share. In addition, the Company will issue certain warrants to the investors in this offering to purchase a total of 5,531,916 shares of common stock at a purchase price of $1.05 per share. The warrants have a term of five years and are exercisable immediately from the issue date.

The Company intends to use the net proceeds from the offering to further accelerate the Company's business plan and fund any additional working capital needs.

The offering is expected to close on or about May 13, 2021, subject to the satisfaction of customary closing conditions.

FT Global Capital, Inc. acted as the exclusive placement agent for the offering.

The common stock, warrants and the common stock issuable upon the exercise of the warrants being offered pursuant to the registered direct offering are being sold pursuant to a shelf registration statement on Form S-3 (File No. 333-230397), previously filed with the Securities and Exchange Commission (the "SEC") and declared effective on April 15, 2019. Such securities are being offered only by means of a prospectus. A prospectus supplement and the accompanying prospectus relating to and describing the terms of the registered direct offering will be filed with the SEC and will be available at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

For further details of this transaction, please see the Form 8-K to be filed with the SEC.

About Senmiao Technology Limited

Headquartered in Chengdu, Sichuan Province, Senmiao provides automobile transaction and related services including sales of automobiles, facilitation and services for automobile purchase and financing, management, operating lease, guarantee and other automobile transaction services as well as operates its own ride-hailing platform aimed principally at the growing ride-hailing market in Senmiao's areas of operation in China. For more information about Senmiao, please visit: http://www.senmiaotech.com. Senmiao routinely provides important updates on its website.

Safe Harbor Statement

This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements.

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SOURCE Senmiao Technology Limited

FAQ

What is the significance of Senmiao Technology's $6.5 million direct offering?

The offering aims to raise $6.5 million to accelerate business plans and cover working capital needs.

When is the expected closing date for the Senmiao Technology offering?

The offering is expected to close on May 13, 2021, subject to customary closing conditions.

How will the funds from the offering be used by Senmiao Technology?

The funds will be used to accelerate the company's business operations and address additional working capital needs.

What are the terms of the warrants issued in the offering?

The warrants allow investors to purchase a total of 5,531,916 shares at $1.05 per share, valid for five years and exercisable immediately.

What are the risks associated with the stock offering by Senmiao Technology?

Existing shareholders face dilution risks due to the issuance of new common stock and associated warrants.