CN Energy Group. Inc. Announces Closing of $10 Million Underwritten Public Offering

Rhea-AI Summary

CN Energy Group announced the closing of its underwritten public offering, raising approximately $10 million in gross proceeds before underwriting discounts. The offering included 18,183,274 units consisting of one Class A ordinary share and one warrant, priced at $0.55 per unit. The company has granted the underwriter a 45-day option for an additional 15% of shares and warrants to cover over-allotments. Proceeds will be used for general corporate purposes, including working capital. This offering was made under an effective shelf registration statement with the SEC.

Positive

• Raised approximately $10 million in gross proceeds.
• Intended use of proceeds includes working capital, potentially supporting future growth.

Negative

• Issuance of new shares may lead to dilution for existing shareholders.

LISHUI, China, Feb. 1, 2023 /PRNewswire/ -- CN Energy Group. Inc. (NASDAQ: CNEY) ("CNEY", or the "Company") today announced the closing of its previously announced underwritten public offering. The gross proceeds to the Company were approximately $10 million, before deducting underwriting discounts and other expenses payable by the Company. The offering consisted of 18,183,274 units/pre-funded units consisting of (a) one Class A ordinary share (or one pre-funded warrant to purchase one Class A ordinary share in lieu thereof) and (b) one warrant to purchase one Class A ordinary share (the "Warrants") at a price to the public of $0.55 per Class A ordinary share and Warrant (or $0.5499 per pre-funded warrant and Warrant after reducing $0.0001 attributable to the exercise price of the pre-funded warrants). In addition, the Company has granted the underwriter in the offering a 45-day option to purchase up to an additional 15% of Class A ordinary shares and/or Warrants at the public offering price, less underwriting discounts and commissions, to cover over-allotments in connection with the offering. The Company intends to use the net proceeds from this offering for general corporate purposes, including, but not limited to, working capital.

Aegis Capital Corp. acted as sole book-running manager for the proposed public offering.

This offering was made pursuant to an effective shelf registration statement on Form F-3 (No. 333-264579) previously filed with the U.S. Securities and Exchange Commission (the "SEC") and declared effective by the SEC on June 13, 2022. A final prospectus supplement and accompanying prospectus (collectively, the "Prospectus") describing the terms of the proposed offering was filed with the SEC and is available on the SEC's website located at http://www.sec.gov. Electronic copies of the Prospectus may be obtained by contacting Aegis Capital Corp., Attention: Syndicate Department, 1345 Avenue of the Americas, 27th floor, New York, NY 10105, by email at syndicate@aegiscap.com, or by telephone at (212) 813-1010.

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 registration or qualification under the securities laws of any such state or jurisdiction.

About CN Energy Group. Inc.

CN Energy Group. Inc. is currently listed on NASDAQ under the symbol of CNEY. With patented proprietary bioengineering and physiochemical technologies, CNEY has pioneered and specialized in producing high-quality recyclable activated carbon and renewable energy from abandoned forest and agricultural residues, converting harmful wastes into invaluable wealth and delivering significant financial, economic, environmental, and ecologic benefits. CENY's products and services have been widely used by food and beverage producers, industrial and pharmaceutical manufacturers, as well as environmental protection enterprises. For more information, please visit the Company's website at www.cneny.com.

Forward-Looking Statements

Certain statements, other than statements of historical facts, made in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties, including statements regarding the use of proceeds and the over-allotment option. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to refer to its filings with SEC, including without limitation, Company's registration statements and other filings with the SEC that set forth certain risks and uncertainties that may have an impact on future results and directions of the Company.

Investor Relations
Tel: +86-571-87555823
Email: ir@cneny.com

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SOURCE CN Energy Group. Inc.

FAQ

What is the purpose of CNEY's public offering?

CNEY intends to use the net proceeds for general corporate purposes, including working capital.

How much did CNEY raise in its recent public offering?

CNEY raised approximately $10 million in gross proceeds from the offering.

What price was set for CNEY's Class A ordinary shares and warrants?

The public offering price was set at $0.55 per Class A ordinary share and warrant.

What is the over-allotment option in CNEY's offering?

CNEY granted the underwriter a 45-day option to purchase up to an additional 15% of shares and warrants.

Where can I find the prospectus for CNEY's public offering?

The prospectus is available on the SEC's website at www.sec.gov.