Farmmi, Inc. Prices $42.0 Million Upsized Underwritten Public Offering of Ordinary Shares

Rhea-AI Summary

Farmmi, Inc. (NASDAQ: FAMI) announced an upsized underwritten public offering expected to generate approximately $42.0 million in gross proceeds from the sale of 140,000,000 ordinary shares at $0.30 per share. The offering is set to close on May 3, 2021, pending customary conditions. Additionally, a 45-day over-allotment option may raise total gross proceeds to $48.3 million. The funds will be allocated for working capital and general corporate purposes. Aegis Capital Corp. is the sole book-running manager.

Positive

• Expected gross proceeds of approximately $42.0 million, potentially increasing to $48.3 million with the over-allotment option.
• Funds to be used for working capital and general corporate purposes, enhancing business capabilities.

Negative

• Dilution of existing shareholders due to the issuance of 140,000,000 new shares.

LISHUI, China, April 28, 2021 /PRNewswire/ -- Farmmi, Inc. ("Farmmi" or the "Company") (NASDAQ: FAMI), an agriculture products supplier in China, today announced the pricing of an upsized underwritten public offering with gross proceeds to the Company expected to be approximately $42.0 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company. The public offering equates to 140,000,000 of the Company's ordinary shares at a price of $0.30 per share. The Company intends to use the net proceeds from this offering for working capital and general corporate purposes. The closing of the offering is expected to occur on May 3, 2021, subject to customary closing conditions.

The Company has also granted the underwriter a 45-day option to purchase up to an additional 15% of the number of ordinary shares offered in the public offering to cover over-allotments, if any, which would increase the total gross proceeds of the offering to approximately $48.3 million, if the over-allotment option is exercised in full.

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

The ordinary shares described above are being offered by Farmmi, Inc. pursuant to an effective registration statement on Form F-1 (No. 333-255387) previously filed with the U.S. Securities and Exchange Commission (the "SEC") and declared effective by the SEC on April 28, 2021. A final prospectus (the "Prospectus") describing the terms of the proposed 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 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 and the other documents that the Company has filed with the SEC that are incorporated by reference in such 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 a leading 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. 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 are the details of Farmmi's public offering?

Farmmi is offering 140,000,000 ordinary shares at $0.30 per share, aiming for $42.0 million in gross proceeds.

When is the closing date for Farmmi's public offering?

The closing date for the offering is expected on May 3, 2021.

What is the purpose of the funds raised from the offering?

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

Who is managing Farmmi's public offering?

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

What could be the total proceeds if the over-allotment option is exercised?

If the over-allotment option is fully exercised, total gross proceeds could reach approximately $48.3 million.