Mercurity Fintech Holding Inc. Priced Additional $8 Million Private Placement Financing to Strengthen Its Business Development in AI Manufacturing Innovations

Rhea-AI Summary

Mercurity Fintech Holding Inc. (MFH) has announced the pricing of a new private investment in public equity (PIPE) financing, selling 1,370,000 ordinary shares to an institutional investor at US$5.87 per share. The at-market pricing resulted in gross proceeds of approximately US$8,041,900.

This PIPE follows a previous US$10 million offering closed on December 19, 2024, at US$6.81 per share with the same institutional investor. The company plans to use the new funding to develop its business in AI hardware intelligent manufacturing and advanced liquid cooling solutions. The closing is expected on or before January 17, 2025, subject to customary conditions.

Positive

• Secured additional $8.04M in gross proceeds through PIPE financing
• Successfully closed second PIPE with same institutional investor within weeks
• Pricing at market value indicates investor confidence
• Strengthens working capital for AI hardware manufacturing development

Negative

• Share price declined from $6.81 to $5.87 between the two PIPE offerings
• Potential dilution of existing shareholders' value
• Securities sold are restricted and not immediately tradeable

Insights

Financial Analyst

The $8 million PIPE financing, priced at $5.87 per share, represents a strategic capital injection following a recent $10 million raise in December 2024. The pricing at market value, rather than a discount, suggests strong investor confidence. However, the 13.8% lower price compared to the December round ($6.81 per share) warrants attention and could indicate some pricing pressure.

With a current market cap of $374.7 million, this dilution adds approximately 2.2% to the share count. The rapid succession of two PIPE deals within weeks, totaling $18 million, demonstrates aggressive capital raising but also suggests significant near-term capital requirements for AI manufacturing initiatives. The same institutional investor participating in both rounds indicates strong backing but also concentration risk in the shareholder base.

The focus on AI hardware manufacturing and cooling solutions positions MFH in the high-growth AI infrastructure sector. However, investors should note the substantial capital requirements and competitive landscape in this space. The unregistered nature of the shares and private placement structure indicates a strategic rather than retail-focused financing approach.

Tech Industry Analyst

MFH's pivot into AI hardware manufacturing and liquid cooling solutions represents a strategic entry into a critical AI infrastructure segment. The advanced cooling systems market is particularly vital as AI computational demands drive higher power densities and thermal management challenges. Liquid cooling solutions are becoming essential for next-generation AI hardware, with the market expected to see substantial growth.

The rapid funding sequence suggests an accelerated timeline for technology development and market entry. However, competing against established players in AI hardware manufacturing requires significant technological differentiation and scale. The focus on intelligent manufacturing indicates potential automation and efficiency advantages, but success will depend on execution and technological innovation capability.

For simplified understanding: Think of this as building the essential 'plumbing' for AI systems - just as high-performance cars need advanced cooling systems, modern AI computers need specialized cooling to operate at peak performance. MFH is positioning itself to be a key supplier in this growing market.

New York, NY, Jan. 15, 2025 (GLOBE NEWSWIRE) -- Mercurity Fintech Holding Inc. (the “Company,” “we,” “us,” “our company,” or “MFH”) (Nasdaq: MFH), a digital fintech group, is pleased to announce the pricing of another private investment in public equity (the “PIPE”) financing. On January 9, 2025, the Company entered into a securities purchase agreement and priced the PIPE offering, pursuant to which it sold an aggregate of 1,370,000 ordinary shares to one institutional investor at a price of US$5.87 per share. The financing is priced at-the-market under Nasdaq rules, representing 100% of the closing price of the Company's shares on January 8, 2025. The offering resulted in total gross proceeds of approximately US$8,041,900 ("Gross Proceeds") before deducting fees and offering expenses payable by the Company.

Subject to customary closing conditions, the PIPE is expected to close on or before January 17, 2025. The securities described above were sold in a private placement and have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (the “SEC”) or an applicable exemption from such registration requirements.

This PIPE investment comes just weeks after the Company’s successful closing of a previous US$10 million PIPE offering with the same institutional investor on December 19, 2024, at US$6.81 per share.

The Company plans to leverage this latest funding to develop its business in AI hardware intelligent manufacturing and advanced liquid cooling solutions.

"This latest PIPE financing represents another strong vote of confidence in MFH's strategic vision and execution capabilities," said Shi Qiu, CEO of Mercurity Fintech Holding Inc. "Coming just weeks after our previous successful raise with the same institutional investor, this financing will provide additional working capital for our planned business development and operations in AI hardware manufacturing and advanced cooling solutions. The rapid succession of investments reflects this institutional investor’s growing confidence in our vision and trajectory. We remain focused on creating value for our shareholders while making contributions to technological innovation."

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, 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 Mercurity Fintech Holding Inc.
Mercurity Fintech Holding Inc. is a digital fintech company with subsidiaries specializing in distributed computing and digital consultation across North America and the Asia-Pacific region. Our focus is on delivering innovative financial solutions while adhering to principles of compliance, professionalism, and operational efficiency. Our aim is to contribute to the evolution of digital finance by providing secure and innovative financial services to individuals and businesses. And our dedication to compliance, professionalism, and operational excellence ensures that we remain a trusted partner in the rapidly transforming financial landscape. For more information, please visit the Company’s website at https://mercurityfintech.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. 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:
International Elite Capital Inc.
Vicky Chueng
Tel: +1(646) 866-7989
Email: mfhfintech@iecapitalusa.com

FAQ

How much did MFH raise in its January 2025 PIPE financing?

MFH raised approximately US$8,041,900 in gross proceeds through the January 2025 PIPE financing.

What is the share price for MFH's January 2025 PIPE offering?

The shares were priced at US$5.87 per share, representing 100% of the closing price on January 8, 2025.

How many shares did MFH sell in the January 2025 PIPE offering?

MFH sold 1,370,000 ordinary shares in the January 2025 PIPE offering.

What will MFH use the January 2025 PIPE proceeds for?

MFH plans to use the proceeds to develop its business in AI hardware intelligent manufacturing and advanced liquid cooling solutions.

How does the January 2025 PIPE compare to MFH's previous December 2024 offering?

The January 2025 PIPE ($8.04M at $5.87/share) follows a $10M PIPE in December 2024 priced at $6.81/share, both with the same institutional investor.