FangDD Announces US$2.5 Million Registered Direct Offering of Class A Ordinary Shares
FangDD Network Group (Nasdaq: DUO), a property technology company in China, has announced a US$2.5 million registered direct offering of Class A ordinary shares. The company will issue and sell 1,612,902 Class A ordinary shares at US$1.55 per share to certain investors. The offering is expected to close on or about October 2, 2024, subject to customary closing conditions.
FangDD plans to use the net proceeds for general corporate purposes. MM Global Securities, Inc. has been engaged as the exclusive placement agent for this offering. The securities will be offered through an effective "shelf" registration statement on Form F-3 previously filed with the SEC. A prospectus supplement and accompanying base prospectus will be filed with the SEC and will be available on their website.
FangDD Network Group (Nasdaq: DUO), una società di tecnologia immobiliare in Cina, ha annunciato un offerta diretta registrata di 2,5 milioni di dollari di azioni ordinarie di Classe A. La società emetterà e venderà 1.612.902 azioni ordinarie di Classe A a 1,55 dollari per azione a investitori selezionati. Si prevede che l'offerta si concluda il 2 ottobre 2024, soggetta a consuete condizioni di chiusura.
FangDD prevede di utilizzare i proventi netti per scopi aziendali generali. MM Global Securities, Inc. è stata incaricata come agente di collocamento esclusivo per questa offerta. I titoli saranno offerti tramite una dichiarazione di registrazione
- Secured US$2.5 million in additional funding through registered direct offering
- Priced at US$1.55 per share, indicating investor confidence
- Engaged MM Global Securities, Inc. as exclusive placement agent, potentially enhancing credibility of the offering
- Potential dilution of existing shareholders' ownership due to issuance of new shares
- Use of proceeds for 'general corporate purposes' lacks specific growth strategy or debt reduction plans
Insights
FangDD's
The company's micro-cap status (
Investors should closely monitor the company's cash burn rate and operational efficiency. The need for this capital raise may indicate ongoing financial challenges or ambitious growth plans. Without clear guidance on specific use of proceeds, it's difficult to assess the potential return on this investment for the company.
The registered direct offering complies with SEC regulations, utilizing an effective shelf registration statement. This approach streamlines the capital raising process and provides some assurance to investors regarding regulatory compliance. However, the use of a shelf registration often indicates a company's anticipation of future capital needs.
Investors should note that while the offering is registered, it's still a direct placement to specific investors rather than a public offering. This could suggest institutional interest or a strategic decision to work with particular investors. The involvement of MM Global Securities as the exclusive placement agent is standard practice but may come with fees that reduce the net proceeds to FangDD.
The cautionary language regarding the press release not constituting an offer to sell is a standard legal disclaimer, protecting the company from potential securities law violations. Overall, the legal structure of this offering appears sound, but investors should always conduct their own due diligence.
SHENZHEN, China, Oct. 01, 2024 (GLOBE NEWSWIRE) -- Fangdd Network Group Ltd. (Nasdaq: DUO) (“FangDD” or the “Company”), a customer-oriented property technology company in China, today announced that it has entered into a securities purchase agreement with certain investors (the “Purchase Agreement”) for the issuance and sale by the Company of 1,612,902 Class A ordinary shares (“Class A Ordinary Shares”), at a price of US
The Purchase Agreement contains representations, warranties and other provisions customary for transactions of this nature. The offering is expected to close on or about October 2, 2024, subject to the satisfaction of customary closing conditions. FangDD intends to use the net proceeds from this offering for general corporate purposes.
The Company has engaged MM Global Securities, Inc. as its exclusive placement agent in connection with this offering.
The securities described above will be offered by the Company pursuant to an effective “shelf” registration statement on Form F-3 (File No. 333-267397) previously filed with the United States Securities and Exchange Commission (the “SEC”) on September 13, 2022 and declared effective by the SEC on September 29, 2022. The securities may be offered only by means of a written prospectus and prospectus supplement that form a part of the registration statement. The prospectus supplement and accompanying base prospectus contain important information relating to the Class A Ordinary Shares offering. The prospectus supplement will be filed with the SEC and will be available on the SEC’s website at http://www.sec.gov, or may be obtained, when available, by contacting us at Room 1501, Shangmei Technology Building, No. 15 Dachong Road, Nanshan District, Shenzhen, the PRC, or by email at ir@fangdd.com.
This press release shall not constitute an offer to sell nor 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.
About FangDD
Fangdd Network Group Ltd. (Nasdaq: DUO) is a customer-oriented property technology company in China, focusing on providing real estate transaction digitalization services. Through innovative use of mobile internet, cloud, big data, artificial intelligence, among others, FangDD has fundamentally revolutionized the way real estate transaction participants conduct their business through a suite of modular products and solutions powered by SaaS tools, products and technology. For more information, please visit http://ir.fangdd.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “aim,” “anticipate,” “believe,” “estimate,” “expect,” “hope,” “going forward,” “intend,” “ought to,” “plan,” “project,” “potential,” “seek,” “may,” “might,” “can,” “could,” “will,” “would,” “shall,” “should,” “is likely to” and the negative form of these words and other similar expressions. Among other things, statements that are not historical facts, including statements about the Company’s beliefs and expectations are or contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. All information provided in this press release is as of the date of this press release and is based on assumptions that the Company believes to be reasonable as of this date, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Investor Relations Contact
Ms. Linda Li
Director, Capital Markets Department
Phone: +86-0755-2699-8968
E-mail: ir@fangdd.com
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