Oriental Culture Signs Securities Purchase Agreements to Raise Capital

Rhea-AI Summary

Oriental Culture Holding LTD (OCG) has entered into Securities Purchase Agreements with two investors to sell 600,000 ordinary shares at $5.00 per share, raising a total of $3 million. Additionally, the Company will issue warrants for the purchase of 600,000 shares at an exercise price of $6.00, valid for one year. The transaction is facilitated under Regulation S provisions of the Securities Act. OCG operates as an online provider of collectibles and artwork services, enhancing market access for collectors and artists.

Positive

• Raised $3 million through the private placement.
• Strengthened investor relations by entering agreements for equity financing.

Negative

• Potential dilution of existing shareholders due to new share issuance.
• Warrants may lead to further dilution if exercised.

HONG KONG, Dec. 8, 2021 /PRNewswire/ -- Oriental Culture Holding LTD. ("OCG" or the "Company") (NASDAQ: OCG), a leading online provider of collectibles and artwork e-commerce services, today announced it has entered into Securities Purchase Agreements ("Agreements") with two investors ("Investors") on December 7, 2021, pursuant to which the Company agreed to sell to the Investors in private placements of 600,000 ordinary shares (the "Shares") of the Company, par value $0.00005 per share, at a purchase price of $5.00 per share for an aggregate offering price of $3,000,000 (the "Private Placements"). In connection with offering, the Company has also agreed to issue the warrants to the Investors to purchase up to an aggregate of 600,000 ordinary shares at an exercise price of $6.00 per share (the "Warrants"). The Warrants have a term of one year and are exercisable by the holder at any time after the date of issuance. The Private Placements will be completed pursuant to the exemption from registration provided by Regulation S promulgated under the Securities Act of 1933, as amended.

About Oriental Culture Holding LTD

Oriental Culture Holding LTD is an online provider of collectibles and artwork e-commerce services, which allow collectors, artists, art dealers and owners to access an art and collectible trading market with a wider range of collectible and artwork investors. Through its subsidiaries in Hong Kong, the Company provides trading facilitation for individual and institutional customers of all kinds of collectibles, artwork and certain commodities on its online platforms, as well as online and offline integrated marketing, storage and technical maintenance service to customers in China. For more information about the Company, please visit: www.ocgroup.hk.

Safe Harbor Statement

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may, "will, "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; financial condition and results of operations; product and service demand and acceptance; reputation and brand; the impact of competition and pricing; changes in technology; government regulations; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

View original content:https://www.prnewswire.com/news-releases/oriental-culture-signs-securities-purchase-agreements-to-raise-capital-301439980.html

SOURCE Oriental Culture Holding LTD.

FAQ

What was the purpose of Oriental Culture Holding's recent securities purchase agreements?

The purpose was to raise capital, totaling $3 million from the sale of 600,000 ordinary shares.

What are the terms of the warrants issued by Oriental Culture Holding?

The warrants allow investors to purchase up to 600,000 shares at $6.00 each, with a one-year exercise term.

When were the securities purchase agreements signed by OCG?

The agreements were signed on December 7, 2021.

How much did Oriental Culture Holding raise in its latest capital raising effort?

Oriental Culture Holding raised a total of $3 million from the private placement.

What is the share price set for the new ordinary shares sold by OCG?

The new ordinary shares were sold at a price of $5.00 per share.