Agora Announces Private Placement Financing of US$250 Million

Rhea-AI Summary

Agora, Inc. (NASDAQ: API) has announced a private placement agreement with an accredited investor to purchase $250 million of newly issued Class A ordinary shares, representing approximately 4.5% of the company's total outstanding shares. This transaction is expected to close in February 2021, subject to customary closing conditions. The issuance will be exempt from registration under the Securities Act, indicating a private offering. Agora aims to enhance its real-time engagement platform with this capital influx, promoting its mission to integrate real-time voice and video APIs for developers.

Positive

• The private placement of $250 million will provide significant capital to Agora.
• The issuance represents approximately 4.5% of total outstanding shares, potentially enhancing shareholder value.

Negative

• None.

SANTA CLARA, Calif., Feb. 01, 2021 (GLOBE NEWSWIRE) -- Agora, Inc. (NASDAQ: API) (“Agora” or the “Company”), a pioneer and leading platform for real-time engagement APIs, today announced that an accredited investor had agreed to purchase through a private placement a total of US$250 million of newly issued Class A ordinary shares of the Company, representing approximately 4.5% of the Company’s total outstanding shares. The private placement is expected to be closed in February 2021, subject to the satisfaction or waiver of customary closing conditions.

It is expected that the share issuance will be exempted from registration under the Securities Act of 1933, as amended, (the “Securities Act”) pursuant to Section 4(a)(2) of the Securities Act regarding transactions not involving a public offering or Regulation S under the Securities Act.

Safe Harbor Statement

This press release contains ‘‘forward-looking statements’’ within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding Agora’s financial outlook, beliefs and expectations. Forward-looking statements include statements containing words such as “expect,” “anticipate,” “believe,” “project,” “will” and similar expressions intended to identify forward-looking statements. Among other things, the Financial Outlook in this announcement contain forward-looking statements. These forward-looking statements are based on Agora’s current expectations and involve risks and uncertainties that are difficult to predict and many of which are beyond the Company’s control. Further information regarding these and other risks, uncertainties or factors is included in our filings with the Securities and Exchange Commission, including, without limitation, the final prospectus related to the initial public offering filed with the Securities and Exchange Commission on June 26, 2020. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Agora undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

About Agora

Agora’s mission is to make real-time engagement ubiquitous, allowing everyone to interact with anyone, in any application, anytime and anywhere. Agora’s platform provides developers simple, flexible and powerful application programming interfaces, or APIs, to embed real-time video and voice engagement experiences into their applications.

For more information, please visit: www.agora.io.

Investor Contact:
Fionna Chen
investor@agora.io

Media Contact:
Suzanne Nguyen
press@agora.io

FAQ

What is the amount Agora is raising through the private placement?

Agora is raising $250 million through a private placement of newly issued Class A ordinary shares.

When is the private placement expected to close?

The private placement is expected to close in February 2021.

What percentage of the total outstanding shares does the new issuance represent?

The new issuance represents approximately 4.5% of Agora's total outstanding shares.

Will the share issuance be registered under the Securities Act?

No, the share issuance will be exempt from registration under the Securities Act.

What does Agora aim to achieve with the capital from the private placement?

Agora aims to enhance its real-time engagement platform and facilitate the integration of voice and video APIs for developers.