FangDD Announces US$5,000,000 Senior Convertible Notes Offering
FangDD Network Group (Nasdaq: DUO) has announced a US$5,000,000 senior convertible notes offering. The notes feature a 5% original issue discount and a nine-month term. Key terms include:
- No interest accrual unless default occurs (15% per annum if defaulted)
- Conversion into Class A ordinary shares available
- Conversion price: lower of 130% of lowest daily VWAP before closing or 90% of lowest 10-day VWAP before conversion
- Floor price set at US$0.10 per share
The offering includes additional 251,890 Class A ordinary shares and is expected to close around March 14, 2025. MM Global Securities, Inc. serves as the exclusive placement agent. The company plans to use proceeds for general corporate purposes.
FangDD Network Group (Nasdaq: DUO) ha annunciato un'offerta di note convertibili senior del valore di 5.000.000 USD. Le note presentano uno sconto sul valore nominale del 5% e una durata di nove mesi. Termini chiave includono:
- Nessun interesse accumulato a meno che non si verifichi un default (15% annuo in caso di default)
- Conversione in azioni ordinarie di Classe A disponibile
- Prezzo di conversione: il minore tra il 130% del VWAP giornaliero più basso prima della chiusura o il 90% del VWAP dei 10 giorni più bassi prima della conversione
- Prezzo minimo fissato a 0,10 USD per azione
L'offerta include ulteriori 251.890 azioni ordinarie di Classe A ed è prevista la chiusura intorno al 14 marzo 2025. MM Global Securities, Inc. funge da agente di collocamento esclusivo. La società prevede di utilizzare i proventi per scopi aziendali generali.
FangDD Network Group (Nasdaq: DUO) ha anunciado una oferta de notas convertibles senior por un valor de 5.000.000 USD. Las notas cuentan con un descuento del 5% sobre el valor nominal y un plazo de nueve meses. Términos clave incluyen:
- No se acumularán intereses a menos que ocurra un incumplimiento (15% anual en caso de incumplimiento)
- Conversión en acciones ordinarias de Clase A disponible
- Precio de conversión: el menor entre el 130% del VWAP diario más bajo antes del cierre o el 90% del VWAP más bajo de 10 días antes de la conversión
- Precio mínimo establecido en 0,10 USD por acción
La oferta incluye 251.890 acciones ordinarias de Clase A adicionales y se espera que cierre alrededor del 14 de marzo de 2025. MM Global Securities, Inc. actúa como agente de colocación exclusivo. La empresa planea utilizar los ingresos para fines corporativos generales.
FangDD Network Group (Nasdaq: DUO)는 5,000,000 USD 규모의 선순위 전환사채 발행을 발표했습니다. 이 채권은 5%의 발행 할인과 9개월의 만기를 특징으로 합니다. 주요 조건은 다음과 같습니다:
- 디폴트가 발생하지 않는 한 이자는 발생하지 않음 (디폴트 시 연 15%)
- 클래스 A 보통주로의 전환 가능
- 전환 가격: 마감 전 가장 낮은 일일 VWAP의 130% 또는 전환 전 가장 낮은 10일 VWAP의 90% 중 낮은 가격
- 주당 0.10 USD로 바닥 가격 설정
이번 발행에는 추가로 251,890주의 클래스 A 보통주가 포함되며, 2025년 3월 14일경에 마감될 것으로 예상됩니다. MM Global Securities, Inc.가 독점 배치 대행사로 활동합니다. 회사는 수익금을 일반 기업 목적에 사용할 계획입니다.
FangDD Network Group (Nasdaq: DUO) a annoncé une offre de billets convertibles senior d'un montant de 5.000.000 USD. Les billets présentent une remise de 5 % sur le montant nominal et une durée de neuf mois. Conditions clés incluent :
- Aucun intérêt accumulé à moins qu'un défaut ne se produise (15 % par an en cas de défaut)
- Conversion en actions ordinaires de Classe A disponible
- Prix de conversion : le plus bas entre 130 % du VWAP quotidien le plus bas avant la clôture ou 90 % du VWAP des 10 jours les plus bas avant la conversion
- Prix de plancher fixé à 0,10 USD par action
L'offre comprend également 251.890 actions ordinaires de Classe A supplémentaires et devrait se clôturer autour du 14 mars 2025. MM Global Securities, Inc. agit en tant qu'agent de placement exclusif. L'entreprise prévoit d'utiliser les produits pour des besoins d'entreprise généraux.
FangDD Network Group (Nasdaq: DUO) hat ein Angebot über 5.000.000 USD an vorrangigen wandelbaren Anleihen angekündigt. Die Anleihen bieten einen ursprünglichen Ausgabeabschlag von 5% und haben eine Laufzeit von neun Monaten. Wichtige Bedingungen sind:
- Keine Zinsansammlung, es sei denn, es tritt ein Zahlungsausfall ein (15% pro Jahr im Falle eines Zahlungsausfalls)
- Umwandlung in Klasse A Stammaktien verfügbar
- Umwandlungspreis: der niedrigere Wert von 130% des niedrigsten täglichen VWAP vor dem Abschluss oder 90% des niedrigsten 10-Tage-VWAP vor der Umwandlung
- Mindestpreis auf 0,10 USD pro Aktie festgelegt
Das Angebot umfasst zusätzlich 251.890 Klasse A Stammaktien und wird voraussichtlich um den 14. März 2025 abgeschlossen. MM Global Securities, Inc. fungiert als exklusiver Platzierungsagent. Das Unternehmen plant, die Erlöse für allgemeine Unternehmenszwecke zu verwenden.
- Senior ranking of notes provides better security for note holders
- Zero interest accrual during regular term reduces immediate cost burden
- 5% original issue discount represents immediate cost to company
- Potential dilution for existing shareholders through conversion to Class A shares
- High 15% penalty interest rate if default occurs
- Variable conversion price structure could lead to increased share issuance if stock price declines
Insights
FangDD's US$5 million convertible notes offering represents a significant financing event for a company with only a $15.3 million market capitalization. The terms reveal important considerations for investors:
The 9-month term is unusually short for convertible debt, potentially indicating near-term capital needs rather than strategic long-term financing. The conversion mechanism allows note holders to convert at the lower of two prices: either 130% of the lowest VWAP before closing or 90% of the lowest VWAP over 10 trading days before conversion - essentially guaranteeing conversion at a discount to market prices.
This structure creates potential dilution pressure for existing shareholders, as the company will likely issue shares below market value. The floor price of
The senior ranking of these notes compared to other debt obligations benefits the noteholders but increases risk for other creditors. The vague "general corporate purposes" use of proceeds gives investors little visibility into how capital will be deployed.
For a microcap company trading at these price levels, this financing appears more like a necessity than an opportunity, potentially signaling ongoing capital constraints that could impact future growth initiatives.
SHENZHEN, China, March 14, 2025 (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 offering by the Company of (i) senior
The Notes carry a
Holders can convert their Notes into Class A ordinary shares by providing a conversion notice. The number of shares issuable upon conversion is calculated by dividing (i) the portion of the principal and any accrued interest the holder chooses to convert by (ii) the conversion price on the date of the conversion notice. The conversion price is the lower of (i) the fixed conversion price, set at
The Purchase Agreement and the Notes contain representations, warranties and other provisions customary for transactions of this nature. The offering is expected to close on or about March 14, 2025, 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 to be sold in the 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. The foregoing description of the Purchase Agreement and the Notes is qualified in its entirety by reference to the full text of such agreements furnished as exhibits to a current report on Form 6-K to be furnished by the Company to the SEC.
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
