ARMLOGI HOLDING CORP. ANNOUNCES UP TO $21 MILLION CONVERTIBLE PROMISSORY NOTES AND $50 MILLION STANDBY EQUITY PURCHASE AGREEMENT
Armlogi Holding Corp (Nasdaq: BTOC) has secured significant financing through two arrangements: a Standby Equity Purchase Agreement (SEPA) worth up to $50 million with YA II PN, , and convertible promissory notes totaling $21 million. The SEPA allows the company to sell common stock to YA over a two-year period, with an initial pre-paid advance of $5 million already received. The funding will be used for working capital, general corporate purposes, and repayment of pre-paid advances. The agreement includes provisions for YA to purchase shares through advance notices, subject to certain conditions including SEC registration of the common stock.
Armlogi Holding Corp (Nasdaq: BTOC) ha ottenuto un finanziamento significativo attraverso due accordi: un Accordo di Acquisto di Azioni di Emergenza (SEPA) del valore di fino a $50 milioni con YA II PN, e note convertibili per un totale di $21 milioni. Il SEPA consente all'azienda di vendere azioni ordinarie a YA nel corso di un periodo di due anni, con un anticipo iniziale prepagato di $5 milioni già ricevuto. I fondi saranno utilizzati per il capitale circolante, fini aziendali generali e rimborso di anticipi prepagati. L'accordo include disposizioni che consentono a YA di acquistare azioni attraverso notifiche di anticipo, soggette a determinate condizioni, tra cui la registrazione delle azioni ordinarie dalla SEC.
Armlogi Holding Corp (Nasdaq: BTOC) ha conseguido un financiamiento significativo a través de dos acuerdos: un Acuerdo de Compra de Acciones de Emergencia (SEPA) por un valor de hasta $50 millones con YA II PN, y notas convertibles por un total de $21 millones. El SEPA permite a la empresa vender acciones comunes a YA durante un período de dos años, con un anticipo inicial prepagado de $5 millones ya recibido. Los fondos se utilizarán para capital de trabajo, propósitos corporativos generales y reembolso de anticipos prepagados. El acuerdo incluye disposiciones para que YA compre acciones a través de avisos de anticipo, sujeto a ciertas condiciones que incluyen el registro de las acciones comunes ante la SEC.
Armlogi Holding Corp (Nasdaq: BTOC)는 두 가지 계약을 통해 상당한 자금을 확보했습니다: YA II PN과의 최대 $50백만 규모의 비상 주식 매입 계약(SEPA)과 총 $21백만의 전환 사채입니다. SEPA는 회사가 2년 동안 YA에 일반 주식을 판매할 수 있게 하며, 이미 $5백만의 선불이 지급된 상태입니다. 자금은 운영 자본, 일반 기업 목적으로 사용되며 선불 금액 상환에도 사용됩니다. 이 계약에는 YA가 특정 조건, 즉 SEC의 일반 주식 등록을 포함한 조건에 따라 사전 통지를 통해 주식을 구매할 수 있는 조항이 포함되어 있습니다.
Armlogi Holding Corp (Nasdaq: BTOC) a sécurisé un financement significatif grâce à deux accords : un Accord d'Achat d'Actions de Secours (SEPA) d'une valeur allant jusqu'à 50 millions de $ avec YA II PN, et des billets de trésorerie convertibles totalisant 21 millions de $. Le SEPA permet à l'entreprise de vendre des actions ordinaires à YA sur une période de deux ans, avec un premier acompte prépayé de 5 millions de $ déjà reçu. Les fonds seront utilisés pour le fonds de roulement, les fins corporatives générales, et le remboursement des avances prépayées. L'accord comprend des dispositions permettant à YA d'acheter des actions via des avis avancés, sous réserve de certaines conditions, y compris l'enregistrement des actions ordinaires auprès de la SEC.
Armlogi Holding Corp (Nasdaq: BTOC) hat durch zwei Vereinbarungen erhebliche Finanzierungen gesichert: eine Standby Equity Purchase Agreement (SEPA) im Wert von bis zu $50 Millionen mit YA II PN und wandelbare Schuldverschreibungen im Gesamtwert von $21 Millionen. Das SEPA ermöglicht es dem Unternehmen, über einen Zeitraum von zwei Jahren Stammaktien an YA zu verkaufen, wobei bereits eine erste Vorauszahlung von $5 Millionen erhalten wurde. Die Mittel werden für das Betriebsvermögen, allgemeine Unternehmenszwecke und die Rückzahlung von Vorauszahlungen verwendet. Die Vereinbarung enthält Bestimmungen, die es YA ermöglichen, Aktien durch Vorausbenachrichtigungen zu kaufen, die bestimmten Bedingungen unterliegen, einschließlich der SEC-Registrierung der Stammaktien.
- Secured up to $50 million in equity financing through SEPA
- Obtained $21 million in convertible promissory notes
- Received initial $5 million pre-paid advance
- Two-year funding commitment providing financial flexibility
- Potential shareholder dilution from stock issuance
- Convertible notes may lead to additional dilution when converted
Insights
This financing deal represents a significant but complex capital arrangement. The
The structure raises some concerns: YA gains significant control over share issuance once notes are outstanding, potentially leading to dilution pressure. The two-year SEPA term and convertible nature of the notes suggest this is expensive capital, typical for smaller-cap companies with immediate funding needs. The use of proceeds for working capital rather than growth initiatives signals possible cash flow challenges.
The deal's complexity and terms indicate higher financing costs compared to traditional debt, reflecting the company's current market position and risk profile. Investors should monitor dilution impact and the company's ability to generate sufficient cash flow to minimize reliance on these facilities.
WALNUT, CA, Nov. 25, 2024 (GLOBE NEWSWIRE) -- Armlogi Holding Corp. (“Armlogi” or the “Company”) (Nasdaq: BTOC), a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment, today announced that it has entered into a Standby Equity Purchase Agreement (the “SEPA”), with YA II PN, Ltd. (“YA”), a fund managed by Yorkville Advisors Global, LP. Pursuant to the terms of the SEPA, YA is committed to purchase up to
If there is no balance outstanding under the Promissory Notes, the Company will have the sole right in its discretion to sell shares to YA from time to time by issuing Advance Notices to YA following the effectiveness of a registration statement with the U.S. Securities and Exchange Commission registering the Common Stock issuable pursuant to the SEPA and the satisfaction of other customary conditions. For so long as there is a balance outstanding under the Promissory Notes, YA, at its sole discretion, may deliver to the Company a notice (an “Investor Notice”) to cause an Advance Notice to be deemed delivered to YA and the issuance of shares of Common Stock to YA.
The Company intends to use the proceeds from the offering of the Common Stock pursuant to the SEPA for working capital and other general corporate purposes, and to repay any pre-paid advances.
D. Boral Capital LLC acted as the exclusive placement agent for the Offering.
About Armlogi Holding Corp.
Armlogi Holding Corp., based in Walnut, CA, is a fast-growing U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions relating to warehouse management and order fulfillment. The Company caters to cross-border e-commerce merchants looking to establish overseas warehouses in the U.S. market. With ten warehouses covering over three million square feet, the Company offers comprehensive one-stop warehousing and logistics services. The Company’s warehouses are equipped with facilities and technology for handling and storing large and bulky items. For more information, please visit www.armlogi.com.
Safe Harbor Statement
This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us.
Company Contact:
info@armlogi.com
Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com
FAQ
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