Meten Holding Group Prices $60 Million Underwritten Public Offering of Ordinary Shares and Pre-Funded Warrants to Purchase Ordinary Shares

Rhea-AI Summary

Meten Holding Group Ltd. announced a public offering of ordinary shares and pre-funded warrants, aiming for gross proceeds of approximately $60 million. The offering consists of 200,000,000 ordinary shares priced at $0.30 per share, with the closing expected on September 7, 2021. The net proceeds will be utilized for capital expenditure, general corporate, and working capital needs. Aegis Capital Corp. is the sole manager of the offering, conducted under an effective shelf registration statement previously filed with the SEC.

Positive

• Gross proceeds expected to be approximately $60 million from the offering.
• Intends to use proceeds for capital expenditure and working capital needs, potentially supporting growth.

Negative

• Issuance of new shares may lead to shareholder dilution.
• Market reaction to public offerings can often be negative, affecting stock price.

SHENZHEN, China, Sept. 1, 2021 /PRNewswire/ -- Meten Holding Group Ltd. ("Meten Holding" or the "Company") (NASDAQ: METX), one of the leading omnichannel English language training ("ELT") service providers in China, today announced the pricing of 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 $60 million, before deducting underwriting discounts and commissions and other estimated expenses payable by the Company. The Offering equates to 200,000,000 of the Company's ordinary shares at a price of $0.30 per share. The pre-funded warrants shall be offered at the same price per share as the ordinary shares, less the $0.01 per share exercise price of each pre-funded warrant. The Company intends to use the net proceeds from this Offering for capital expenditure, general corporate and working capital needs. The ordinary shares are trading on The Nasdaq Capital Market under the symbol "METX". The closing of the Offering is expected to occur on September 7, 2021, subject to customary closing conditions.

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

The Offering is being made pursuant to an effective shelf registration statement on Form F-3 (No. 333-256087) previously filed with the U.S. Securities and Exchange Commission (the "SEC") and declared effective by the SEC on May 21, 2021. A final prospectus supplement and accompanying 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 final prospectus supplement and the accompanying 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 supplement and the accompanying prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference in such prospectus supplement and the accompanying prospectus, which provide more information about the Company and the 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 Meten Holding Group Ltd.

Meten Holding Group Ltd., formerly known as Meten EdtechX Education Group Ltd., is one of the leading ELT service providers in China, delivering English language and skills training for Chinese students and professionals. Through a sophisticated digital platform and a nationwide network of learning centers, the Company provides its services under three industry-leading brands: Meten (adult and junior ELT services), ABC (primarily junior ELT services) and Likeshuo (online ELT). The Company offers superior teaching quality and student satisfaction, served by cutting edge technology deployed across its business, including AI-driven centralized teaching and management systems that record and analyze learning processes in real time. The Company is committed to improving the overall English language competence of the Chinese population to keep abreast of the rapid development of globalization. Its experienced management is focused on further developing its digital platform and expanding its network of learning centers to deliver a continually evolving service offerings to a growing number of students across China.

For more information, please visit: https://investor.metenedu-edtechx.com.

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 closing of the Offering. 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.

For more information, please contact Investor Relations:

Ascent Investor Relations LLC
Tina Xiao
+1 917-609-0333
tina.xiao@ascent-ir.com

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SOURCE Meten Holding Group Ltd.

FAQ

What is the purpose of Meten Holding's $60 million public offering?

The proceeds are intended for capital expenditure, general corporate, and working capital needs.

How many shares are being offered in Meten Holding's public offering?

A total of 200,000,000 ordinary shares are being offered at a price of $0.30 per share.

When is the closing date for Meten Holding's public offering?

The closing of the offering is expected to occur on September 7, 2021.

Who is managing the underwritten public offering for Meten Holding?

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

What is the stock symbol for Meten Holding?

The company's stock is traded on NASDAQ under the symbol METX.