Nature's Miracle Holding Inc. Announces Pricing of $1.2 Million Public Offering

Rhea-AI Summary

Nature's Miracle Holding Inc. (NASDAQ: NMHI), a vertical farming technology leader, has announced the pricing of a $1.2 million public offering. The offering consists of 5,000,000 units priced at $0.24 per unit, each including one common stock share and one Series A Warrant. The closing is expected around July 29, 2024. EF Hutton is the sole book-running manager, with an option to purchase additional shares and warrants within 45 days. The offering is conducted under the company's Form S-1 registration statement, effective July 25, 2024. This announcement does not constitute an offer to sell or solicitation of an offer to buy these securities.

Positive

• Secured $1.2 million in gross proceeds through public offering
• Potential for additional capital through underwriter's over-allotment option

Negative

• Potential dilution of existing shareholders' equity
• Low offering price of $0.24 per unit may indicate weak market perception

Insights

Financial Analyst

Nature's Miracle Holding Inc.'s $1.2 million public offering presents a mixed bag for investors. The pricing at $0.24 per unit, consisting of one common stock share and one Series A Warrant, signals potential dilution for existing shareholders. This 5,000,000 unit offering could significantly increase the company's outstanding shares, potentially putting downward pressure on the stock price.

The inclusion of warrants in the offering is a double-edged sword. While it may attract investors seeking additional upside potential, it also introduces the possibility of further dilution if exercised. The underwriter's option to purchase additional shares and warrants within 45 days adds another layer of uncertainty to the stock's near-term performance.

Notably, the $1.2 million gross proceeds seem relatively modest for a NASDAQ-listed company in the high-tech vertical farming sector. This raises questions about the company's current financial position and its ability to fund significant growth initiatives. Investors should closely examine Nature's Miracle's cash burn rate and growth strategy to assess whether this capital raise will be sufficient to achieve meaningful milestones.

The involvement of EF Hutton as the sole book-running manager lends some credibility to the offering, but the overall terms suggest caution. Retail investors should be wary of potential volatility and dilution risks in the short term, while keeping an eye on how effectively the company deploys this new capital to drive long-term value in the competitive vertical farming industry.

Market Research Analyst

The vertical farming industry, where Nature's Miracle Holding Inc. operates, is at a critical juncture. While the sector promises sustainable urban food production, it faces challenges in achieving profitability at scale. This $1.2 million offering by Nature's Miracle raises questions about the company's market position and growth trajectory.

The modest size of the offering could indicate either a cautious approach to fundraising or investor appetite. In a rapidly evolving market, this capital might not be sufficient to maintain a competitive edge, especially against well-funded competitors or traditional agriculture players entering the space.

Interestingly, the timing of this offering, amidst global food security concerns and increasing focus on sustainable agriculture, could work in Nature's Miracle's favor. However, the company will need to demonstrate clear differentiation and a path to profitability to stand out in an increasingly crowded field.

The $0.24 unit price suggests a relatively low valuation, which could be seen as an opportunity for risk-tolerant investors but may also reflect market skepticism about the company's prospects. As the vertical farming industry matures, we're likely to see increased consolidation and partnerships. Nature's Miracle's ability to leverage this capital for strategic alliances or technological advancements will be important for its long-term success in this dynamic market landscape.

ONTARIO, Calif., July 26, 2024 /PRNewswire/ -- Nature's Miracle Holding Inc. (NASDAQ: NMHI) ("Nature's Miracle" or the "Company"), a leader in vertical farming technology and infrastructure, today announced the pricing of a public offering of 5,000,000 units (the "Units") consisting of (i) one share of common stock, par value $ 0.0001 per share ("Common Stock") and (ii) one Series A Warrant to purchase one share of Common Stock ("Warrant") at a public offering price of $0.24 per Unit, for aggregate gross proceeds of $1.2 million, prior to deducting underwriting discounts and other offering expenses. The closing of the offering is expected to occur on or about July 29, 2024, subject to the satisfaction of customary closing conditions.

The underwriter has been granted an option, exercisable within 45 days after the closing of this offering, to purchase shares of the Company's common stock at a price of $0.24 per share and/or Warrants at a price of $0.01 per Warrant, or any combination of additional shares of common stock and Warrants, representing, in the aggregate, up to 15% of the number of Units sold in this offering and 15% of the Warrants underlying the Units sold in this offering, in all cases less the underwriting discount to cover over-allotments, if any.

EF Hutton LLC ("EF Hutton") is acting as the sole book running manager for the offering. Sichenzia Ross Ference Carmel LLP is acting as legal counsel to the Company, Lucosky Brookman LLP is acting as legal counsel to EF Hutton.

The offering is being conducted pursuant to the Company's registration statement on Form S-1, as amended July 22, 2024 (File No. 333-280066), as amended, previously filed on June 6, 2024 with the Securities and Exchange Commission ("SEC") that was declared effective by the SEC on July 25, 2024. A final prospectus relating to the offering will be filed with the SEC and will be available on the SEC's website at www.sec.gov. Electronic copies of the final prospectus relating to this offering, when available, may be obtained from EF Hutton LLC, 590 Madison Avenue, 39th Floor, New York, NY 10022, Attention: Syndicate Department, or via email at syndicate@efhuttongroup.com or telephone at (212) 404-7002.

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

About Nature's Miracle Holding Inc.

Nature's Miracle (www.Nature-Miracle.com) is a growing agriculture technology company providing equipment and services to growers in the Controlled Environment Agriculture ("CEA") industry which also includes vertical farming in North America. Nature's Miracle offers hardware to design, build and operate various indoor growing settings including greenhouse and indoor-growing spaces. Nature's Miracle, through its two wholly-owned subsidiaries (Visiontech Group, Inc. and Hydroman, Inc.), provides grow lights as well as other hydroponic products to hundreds of indoor growers in North America.

Forward-Looking Statements

The information in this press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "forecast," "intends," "may," "will," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release may include, for example: the intended use of proceeds from the offering; successful launch and implementation of Nature's Miracle's joint projects with manufacturers and other supply chain participants of steel, rubber and other materials;

changes in Nature's Miracle's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; Nature's Miracle's ability to develop and launch new products and services; Nature's Miracle's ability to successfully and efficiently integrate future expansion plans and opportunities; Nature's Miracle's ability to grow its business in a cost-effective manner; Nature's Miracle's product development timeline and estimated research and development costs; the implementation, market acceptance and success of Nature's Miracle's business model; developments and projections relating to Nature's Miracle's competitors and industry; and Nature's Miracle's approach and goals with respect to technology. These forward-looking statements are based on information available as of the date of this press release, and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing views as of any subsequent date, and no obligation is undertaken to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include: the ability to maintain the listing of the Company's shares on Nasdaq; changes in applicable laws or regulations; the effects of the coronavirus (COVID-19) and any future outbreaks on Nature's Miracle's business; the ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities; the risk of downturns and the possibility of rapid change in the highly competitive industry in which Nature's Miracle's operates; the risk that Nature's Miracle's and its current and future collaborators are unable to successfully develop and commercialize Nature's Miracle's products or services, or experience significant delays in doing so; the risk that the Company may never achieve or sustain profitability; the risk that the Company will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; the risk that the Company experiences difficulties in managing its growth and expanding operations; the risk that third-party suppliers and manufacturers are not able to fully and timely meet their obligations; the risk that Nature's Miracle's is unable to secure or protect its intellectual property; the possibility that Nature's Miracle's may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties described in Nature's Miracle's filings from time to time with the SEC.

Contacts

George Yutuc
Chief Financial Officer
George.Yutuc@nature-miracle.com

MZ North America

Shannon Devine / Rory Rumore
Main: 203-741-8811
NMHI@mzgroup.us

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SOURCE Nature's Miracle Holding Inc.

FAQ

What is the size and price of Nature's Miracle Holding Inc.'s (NMHI) recent public offering?

Nature's Miracle Holding Inc. (NMHI) priced a public offering of 5,000,000 units at $0.24 per unit, raising $1.2 million in gross proceeds.

When is the expected closing date for NMHI's public offering?

The closing of Nature's Miracle Holding Inc.'s public offering is expected to occur on or about July 29, 2024, subject to customary closing conditions.

What does each unit in NMHI's public offering consist of?

Each unit in Nature's Miracle Holding Inc.'s public offering consists of one share of common stock and one Series A Warrant to purchase one share of common stock.

Who is the underwriter for Nature's Miracle Holding Inc.'s (NMHI) public offering?

EF Hutton is acting as the sole book-running manager for Nature's Miracle Holding Inc.'s public offering.