High-Trend International Group Announces the Completion of a $4,452,999 Private Placement of Ordinary Shares to Its Co-Founder, Mr. Dong Zhang At a Price of $2.62 Per Share with a Three-year Lock-up

Rhea-AI Summary

High-Trend International Group (NASDAQ: HTCO) has announced the completion of a significant private placement with co-founder Mr. Dong Zhang. Through his company Speed Wealthy , Zhang has invested $4,452,999 to acquire 1,699,618 Class A ordinary shares at $2.62 per share, reflecting the average closing price over ten consecutive trading days ending March 7, 2025.

The acquired shares are subject to a 36-month lock-up period, preventing any sale or transfer during this time. The transaction, unanimously approved by the Board of Directors, demonstrates Zhang's confidence in the company's strategic direction. The international shipping company plans to use the proceeds for general working capital purposes.

Positive

• Significant insider investment of $4.45M demonstrates management confidence
• 36-month lock-up period shows long-term commitment from co-founder
• Additional working capital strengthens company's financial position

Negative

• Dilution of existing shareholders through new share issuance

News Market Reaction

-33.80%

1 alert

-33.80% News Effect

On the day this news was published, HTCO declined 33.80%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

SINGAPORE, March 11, 2025 /PRNewswire/ -- High-Trend International Group (NASDAQ: HTCO) (the "Company"), an international shipping company, today announced that Mr. Dong Zhang, a co-founder of the Company, has reaffirmed his commitment to the Company's long-term growth through a substantial equity investment. Mr. Zhang, acting through his company, Speed Wealthy Ltd., has entered into a securities purchase agreement to acquire 1,699,618 Class A ordinary shares of High-Trend at a price of US$4,452,999, or $2.62 per share, the average closing price of the Company's ordinary shares over the ten (10) consecutive trading days ending on March 7, 2025.   

This transaction underscores Mr. Zhang's unwavering confidence in the Company's strategic direction, operational resilience, and future value creation potential. Under the terms of the agreement, the acquired shares will be subject to a 36-month lock-up period, during which they cannot be sold, transferred, or otherwise disposed of. The Company intends to use the proceeds from this financing for general working capital purposes. The transaction was unanimously approved by the Company's Board of Directors. 

"This investment reflects the profound belief of High-Trend key shareholder on our company's vision," said Mr. Shixuan He, CEO of the Company "As a co-founder of the Company, Mr. Zhang remains deeply invested in the Company's success and confident that our strategic initiatives will continue to drive value for all stakeholders."

About High-Trend International Group

High-Trend is an international shipping company.

Forward Looking Statements

This announcement contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of the Company set forth herein and those preceded by or that include the words "believe," "expect," "anticipate," "future," "will," "intend," "plan," "estimate" or similar expressions, are "forward-looking statements". Such statements include, but are not limited to risks detailed in the Company's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 20-F for the fiscal year ended October 31, 2023. These forward-looking statements involve a number of risks and uncertainties, which could cause the Company's future results to differ materially from those anticipated. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. All information provided in this press release is as of the date of the publication, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

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SOURCE High-Trend International Group

FAQ

How much did High-Trend International (HTCO) raise in their March 2025 private placement?

High-Trend International raised $4,452,999 through a private placement of ordinary shares to co-founder Dong Zhang at $2.62 per share.

What is the lock-up period for HTCO's March 2025 private placement shares?

The shares are subject to a 36-month (three-year) lock-up period during which they cannot be sold, transferred, or disposed of.

How many shares did Dong Zhang purchase in HTCO's private placement?

Dong Zhang purchased 1,699,618 Class A ordinary shares through his company Speed Wealthy

How will HTCO use the proceeds from the March 2025 private placement?

The company intends to use the proceeds for general working capital purposes.