Farmmi, Inc. Closes $81 Million Underwritten Public Offering of Ordinary Shares and Pre-Funded Warrants to Purchase Ordinary Shares

Rhea-AI Summary

Farmmi, Inc. (NASDAQ: FAMI) has successfully completed an underwritten public offering, generating approximately $81 million in gross proceeds. The offering included 368,261,717 ordinary shares and pre-funded warrants priced at $0.22 per share. The funds will be utilized for general corporate purposes, working capital, and capital expenditures. Aegis Capital Corp. served as the sole book-running manager for the transaction, which was conducted under an effective shelf registration statement filed with the SEC.

Positive

• Gross proceeds of approximately $81 million will enhance liquidity and fund corporate needs.
• The offering allows Farmmi to strengthen its balance sheet and invest in growth opportunities.

Negative

• Dilution risk as a large number of shares were offered, which may impact existing shareholders.

LISHUI, China, Sept. 15, 2021 /PRNewswire/ -- Farmmi, Inc. ("Farmmi" or the "Company") (NASDAQ: FAMI), an agriculture products supplier in China, today announced that it has completed an underwritten public offering of ordinary shares and pre-funded warrants to purchase ordinary shares ("Offering"), with gross proceeds to the Company expected to be approximately $81 million, before deducting underwriting discounts and commissions and other estimated expenses payable by the Company. The Offering included 368,261,717 of the Company's ordinary shares and pre-funded warrants to purchase ordinary shares. The ordinary shares were offered at a price of $0.22 per share. The pre-funded warrants were offered at the same price per share as the ordinary shares, less the $0.0001 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.

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

The Offering was 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 final prospectus supplement (the "Prospectus Supplement") describing the terms of the offering has been filed with the SEC and is available on the SEC's website located at http://www.sec.gov. Electronic copies of the final prospectus supplement may be obtained 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.

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 statements relating to the offering, including as to the intended use of proceeds. 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 was the total amount raised from Farmmi's public offering on September 15, 2021?

Farmmi raised approximately $81 million from its public offering.

How many shares were included in Farmmi's recent offering?

The offering included 368,261,717 ordinary shares and pre-funded warrants.

What is the offering price per share for Farmmi's public offering?

The offering price was set at $0.22 per share.

What will Farmmi do with the proceeds from the offering?

Farmmi intends to use the net proceeds for general corporate purposes, working capital needs, and capital expenditures.

Who managed the Farmmi public offering?

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