Cheetah Net Supply Chain Service Inc. Announces Pricing of $8.19 Million Follow-on Public Offering
Cheetah Net Supply Chain Service, a supplier of parallel-import vehicles and logistic services, announced the pricing of a follow-on public offering of 13,210,000 shares of Class A common stock at $0.62 per share, totaling $8.19 million in gross proceeds. The offering is expected to close on May 15, 2024, contingent upon customary closing conditions. The proceeds will be used to fund working capital and develop warehousing and logistics services. AC Sunshine Securities is the sole placement agent. The registration statement was declared effective on April 26, 2024, with additional filings on May 13, 2024.
- Cheetah Net raised $8.19 million in gross proceeds from the follow-on public offering.
- The offering will fund working capital and develop warehousing and logistics services.
- The offering is supported by a registration statement declared effective by the SEC on April 26, 2024.
- AC Sunshine Securities is acting as the sole placement agent, highlighting strong institutional support.
- The offering price of $0.62 per share is relatively low, which could indicate market apprehensions.
- Shareholder dilution due to the issuance of 13,210,000 new shares.
- Expenses related to placement agent fees and other offering costs will reduce net proceeds.
Insights
Cheetah Net Supply Chain Service Inc. has announced the pricing of its follow-on public offering, which is an important event for investors. The company plans to raise
From an investor's perspective, it's essential to consider the potential dilution of shares. Issuing new shares increases the total number of shares outstanding, which can dilute the ownership percentage of existing shareholders. This might lead to a reduction in earnings per share (EPS), which could affect the stock price negatively in the short term.
On a positive note, the proceeds are intended to be used for working capital and the development of warehousing and logistics services. If these investments lead to improved operational efficiency or expanded business capabilities, it could enhance the company's long-term growth prospects. However, investors should keep an eye on how effectively the company utilizes these funds to generate additional revenue.
Another aspect to consider is the offering price of
In conclusion, while the offering presents opportunities for growth through increased capital, it also carries the risk of share dilution. Investors should weigh these factors carefully before making investment decisions.
Focusing on the market dynamics surrounding Cheetah Net's follow-on public offering, it's essential to understand the broader implications on the stock's liquidity and market perception. A public offering often leads to increased trading volume, which can improve liquidity. This might be favorable for retail investors looking for better entry and exit points.
The use of proceeds for working capital and logistics services development is a strategic move, considering the company's role as a supplier of parallel-import vehicles and a logistics service provider. Investing in logistics might streamline operations and reduce costs, potentially leading to higher profit margins. Improving warehousing capabilities can also enhance inventory management and customer satisfaction, directly impacting sales positively.
Investors should also be aware of how such offerings can affect market sentiment. If the market perceives the capital raise as a sign of financial strength and growth potential, it could lead to a positive shift in stock price. Conversely, if the market views it as a sign of financial distress, it might result in a negative sentiment.
Ultimately, while the announcement of a follow-on offering might have mixed impacts in the short term due to potential dilution, the long-term benefits of enhanced operational efficiency and growth opportunities could outweigh these concerns, making this a potentially neutral to positive development for the company's stock.
CHARLOTTE, N.C., May 14, 2024 (GLOBE NEWSWIRE) -- Cheetah Net Supply Chain Service Inc. (“Cheetah Net” or the “Company”) (NASDAQ: CTNT), a supplier of parallel-import vehicles sourced in the U.S. to be sold in the PRC market and a logistic and warehouse service provider, today announced the pricing of its follow-on offering of 13,210,000 shares of Class A common stock. Each share of Class A common stock is being sold at an offering price of
Cheetah Net intends to use the net proceeds received from the offering to fund working capital and to develop its warehousing and logistics services. The offering is expected to close on or about May 15, 2024, subject to satisfaction of customary closing conditions.
AC Sunshine Securities LLC is acting as the sole placement agent in connection with the offering.
The securities described above are being offered by the Company pursuant to a registration statement on Form S-1, as amended (File No. 333-276300) filed with the U.S. Securities and Exchange Commission (the “SEC”), which was declared effective on April 26, 2024, and a registration statement on Form S-1 (File No. 333-279388) filed in accordance with Rule 462(b) pursuant to the Securities Act of 1933, as amended, on May 13, 2024. A final prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website at http://www.sec.gov. The offering is being made only by means of a prospectus forming part of the effective registration statement. Electronic copies of the prospectus relating to this offering, when available, may be obtained from AC Sunshine Securities LLC, 7380 W. Sand Lake Road, STE 500, Orlando, FL 32819, or by email at info@acsunshine.com. Before investing in this offering, interested parties should read in its entirety the registration statement that the Company has filed with the SEC, which provides additional information about the Company and this offering.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Cheetah Net Supply Chain Service Inc.
Cheetah Net is a supplier of parallel-import vehicles sourced in the U.S. to be sold in the PRC market and a logistic and warehouse service provider. In the PRC, parallel-import vehicles refer to those purchased by dealers directly from overseas markets and imported for sale through channels other than brand manufacturers’ official distribution systems. The Company purchases automobiles, primarily luxury brands such as Mercedes, BMW, Porsche, Lexus, and Bentley, from the U.S. market and resells them to the Company’s customers, including both U.S. and PRC parallel-import car dealers. The Company derives profits primarily from the price difference between the Company’s buying and selling prices for parallel-import vehicles.
Forward-Looking Statements
This press release contains certain forward-looking statements, including statements that are predictive in nature. Forward-looking statements are based on the Company’s current expectations and assumptions. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. These statements may be identified by the use of forward-looking expressions, including, but not limited to, “anticipate,” “believe,” “continue,” “estimate,” “expect,” “future,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company’s filings with the U.S. Securities and Exchange Commission, including its registration statement on Form S-1, as amended, under the caption “Risk Factors.”
For more information, please contact:
Cheetah Net Supply Chain Service Inc.
Investor Relations
(704) 826-7280
ir@cheetah-net.com
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