Glory Star Completes First Tranche Pursuant to An Agreement to Purchase up to $10 Million in Ordinary Shares and Warrants, at a Fixed Combined Purchase Price of $3.50

Rhea-AI Summary

On August 30, 2021, Glory Star New Media Group Holdings Limited (NASDAQ: GSMG) finalized a $2,000,000 sale of ordinary shares and warrants at a combined price of $3.50 each. The offering is part of a larger agreement with an institutional investor, targeting total gross proceeds of approximately $10,000,000. Proceeds will primarily support working capital and corporate purposes. This offering aligns with the Company's existing shelf registration statement, which was effective since September 2020.

Positive

• Completed first tranche sale of $2,000,000 in ordinary shares and warrants.
• Anticipated total gross proceeds of up to approximately $10,000,000.

Negative

• None.

BEIJING, Sept. 1, 2021 /PRNewswire/ -- Glory Star New Media Group Holdings Limited (NASDAQ: GSMG) ("Glory Star" or the "Company"), a leading digital media platform and content-driven e-commerce company in China, today announced that on August 30, 2021, it completed the sale of $2,000,000 of its ordinary shares and warrants to purchase ordinary shares.  Each ordinary share and warrant were sold at a fixed combined purchase price of $3.50. The completion of the first tranche of $2,000,000 was pursuant to a subscription agreement entered into on August 25, 2021, with an institutional investor for the sale of up to 2,857,142 ordinary shares and warrants to purchase up to 2,857,142 ordinary shares for anticipated total gross proceeds of up to approximately $10,000,000.

The Company intends to use the net proceeds from the offering primarily for working capital and other general corporate purposes.

The offering was made pursuant to the Company's existing shelf registration statement on Form F-3 (File No. 333-248554), which was filed with the SEC on September 2, 2020, and declared effective by the SEC on September 14, 2020. The Company filed a prospectus supplement on August 26, 2021, related to the purchase of the first tranche of ordinary shares and warrants, and will file a prospectus supplement each time the institutional investor makes an additional tranche purchase. Once filed, the prospectus supplement and related filings will be available on the SEC's website at www.sec.gov and may also be obtained from the Company's website at www.ir.yaoshixinghui.com.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor may there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Glory Star New Media Group Holdings Limited

Glory Star New Media Group Holdings Limited is a leading digital media platform and content-driven e-commerce company in China. Glory Star's ability to integrate premium lifestyle content, including short videos, online variety shows, online dramas, live streaming, its Cheers lifestyle video series, e-Mall, and mobile app, along with innovative e-commerce offerings on its platform enables it to pursue its mission of enriching people's lives. The Company's large and active user base creates valuable engagement opportunities with consumers and enhances platform stickiness with thousands of domestic and international brands.

Safe Harbor Statement

Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: the ability to manage growth; ability to identify and integrate other future acquisitions; ability to obtain additional financing in the future to fund capital expenditures; fluctuations in general economic and business conditions; costs or other factors adversely affecting the Company's profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 20-F filed with the SEC on March 29, 2021, as amended. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Such information speaks only as of the date of this release.

Contacts

Glory Star New Media Group Holdings Limited
Yida Ye
Email: yeyida@yaoshixinghui.com  

ICR, LLC.
Robin Yang
Tel: +1 (646) 308-0546
Email: gsnm@icrinc.com    

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SOURCE Glory Star New Media Group Holdings Limited

FAQ

What is the significance of the $2 million sale by Glory Star (GSMG)?

The $2 million sale marks the first tranche of a broader agreement aimed at raising a total of $10 million, which will support working capital and corporate initiatives.

When was the Glory Star (GSMG) share sale completed?

The share sale was completed on August 30, 2021.

What is the purchase price for Glory Star (GSMG) shares in this offering?

Each ordinary share and warrant were sold at a combined price of $3.50.

How will Glory Star (GSMG) use the proceeds from the share sale?

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

What is the total amount Glory Star (GSMG) aims to raise from this offering?

Glory Star targets total gross proceeds of approximately $10 million from this offering.