Farmmi, Inc. Announces Proposed Underwritten Public Offering of Ordinary Shares and Pre-Funded Warrants to Purchase Ordinary Shares

Rhea-AI Summary

Farmmi, Inc. (NASDAQ: FAMI) announced a proposed underwritten public offering of ordinary shares and pre-funded warrants to purchase ordinary shares. The pre-funded warrants will be offered at the same price as the ordinary shares, minus a $0.001 exercise price. The net proceeds are intended for general corporate needs and capital expenditures. The offering is subject to market conditions, and completion time, size, and terms are uncertain. Aegis Capital Corp. is managing the offering, which is made under a previously declared effective registration statement.

Positive

• The offering aims to raise capital for general corporate needs and capital expenditures.
• This public offering may enhance liquidity for Farmmi.

Negative

• Potential dilution of shares due to the public offering could negatively impact existing shareholders.
• Market uncertainty may affect the actual size and terms of the offering.

LISHUI, China, Sept. 10, 2021 /PRNewswire/ -- Farmmi, Inc. ("Farmmi" or the "Company") (NASDAQ: FAMI), an agriculture products supplier in China, today announced that it intends to offer in an underwritten public offering ordinary shares and pre-funded warrants to purchase ordinary shares ("Offering"). The pre-funded warrants shall be offered at the same price per share as the ordinary shares, less the $0.001 per share exercise price of each pre-funded warrant. The Company intends to use the net proceeds from this offering for general corporate and working capital needs and capital expenditures. The ordinary shares are trading on The Nasdaq Capital Market under the symbol "FAMI." The Offering is subject to market conditions, and there can be no assurance as to whether or when the Offering may be completed, or as to the actual size or terms of the Offering.

Aegis Capital Corp. is acting as the sole book-running manager for the offering.

The Offering is being made pursuant to an effective shelf registration statement on Form F-3 (No 333-254036) previously filed with the U.S. Securities and Exchange Commission (the "SEC") and declared effective by the SEC on March 16, 2021. A preliminary prospectus supplement and accompanying prospectus describing the terms of the Offering will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov. Electronic copies of the preliminary prospectus supplement and the accompanying prospectus may be obtained, when available, by contacting Aegis Capital Corp., Attention: Syndicate Department, 810 7th Avenue, 18th floor, New York, NY 10019, by email at syndicate@aegiscap.com, or by telephone at (212) 813-1010. Before investing in this offering, interested parties should read in their entirety the prospectus supplement and the accompanying prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference in such prospectus supplement and the accompanying prospectus, which provide more information about the Company and such offering.

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 Farmmi, Inc.

Headquartered in Lishui, Zhejiang, Farmmi, Inc. (NASDAQ: FAMI), is an agricultural products supplier, processor and retailer of Shiitake mushrooms, Mu Er mushrooms, other edible fungi and other agricultural products. For further information about the Company, please visit: http://ir.farmmi.com.cn/.

Forward-Looking Statements

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including the potential impact of COVID-19 on our business within and outside of China and the size of the worldwide mushroom market. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. 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.

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SOURCE Farmmi, Inc.

FAQ

What is Farmmi Inc.'s recent public offering about?

Farmmi Inc. is proposing an underwritten public offering of ordinary shares and pre-funded warrants to raise capital for general corporate needs and expenses.

What are the terms of the public offering for FAMI?

The pre-funded warrants will be offered at the same price per share as ordinary shares, with a $0.001 exercise price.

Who is managing the public offering for Farmmi Inc.?

Aegis Capital Corp. is acting as the sole book-running manager for the offering.

How will the proceeds from the offering be used?

The net proceeds will be used for general corporate purposes and capital expenditures.

Is the offering for FAMI subject to any conditions?

Yes, the offering is subject to market conditions and there is no guarantee on size or completion timing.