China Xiangtai Food Co., Ltd. Announces Closing of US$16.5 Million Registered Direct Offering

Rhea-AI Summary

China Xiangtai Food Co., Ltd. (NASDAQ: PLIN) has closed a registered direct offering and concurrent private placement, raising approximately US$16.5 million in gross proceeds. This offering consists of 17,175,412 ordinary shares and warrants to purchase the same amount of shares, with an exercise price of US$1.008. The funds will be allocated to product R&D, marketing, business development, and working capital. The Company aims to leverage this financing to explore new opportunities and strengthen its competitive position in the market.

Positive

• Raised approximately US$16.5 million in gross proceeds.
• Intended use of funds for R&D, marketing, and business growth, potentially leading to enhanced competitiveness.

Negative

• The offering may cause share dilution due to the issuance of new shares and warrants.

CHONGQING, China, Nov. 24, 2021 (GLOBE NEWSWIRE) -- China Xiangtai Food Co., Ltd. (NASDAQ: PLIN) ("PLIN" or the "Company"), an emerging growth company engaged in the feed raw material wholesale and retail business, today announced the closing of its previously announced registered direct offering and concurrent private placement with certain investors, raising approximately US$16.5 million in gross proceeds, before deducting placement agent fees and other estimated offering expenses. The offering consists of the sale of 17,175,412 ordinary shares in a registered direct offering and warrants to purchase 17,175,412 ordinary shares in a concurrent private placement pursuant to an exemption from the registration requirements of the Securities Act of 1933 provided in Regulation S promulgated thereunder. The warrants will be exercisable 60 days from the date of issuance and have an exercise price of US$1.008. The warrants will expire five years from the date of issuance. The purchase price for one ordinary share and one corresponding warrant was US$0.96.

The Company plans to use the net proceeds from the offering for product research and development, marketing and business development, new business assessment and acquisition, talent acquisition and training, and working capital and general business purposes.

Univest Securities, LLC acted as the exclusive placement agent for this offering. Ortoli Rosenstadt LLP served as counsel to the Company, and Hunter Taubman Fischer & Li LLC served as counsel to Univest Securities, LLC in connection with the Offering.

Ms. Zeshu Dai, Chairwoman and Chief Executive Officer of the Company, stated, "The Company is very pleased to partner with new investors to finance its continuous efforts to develop its current business and to continue its search for potential new business developments. This financing allows the Company to explore new opportunities in emerging industries/markets to strengthen its competitiveness.”

The sale of the ordinary shares in the registered direct offering was made pursuant to a shelf registration statement on Form F-3 (File No. 333-238700), previously filed with the U.S. Securities and Exchange Commission (the "SEC") on May 26, 2020, and declared effective on July 7, 2020. Such securities are being offered only by means of a prospectus. A prospectus supplement and the accompanying prospectus relating to and describing the terms of the registered direct offering were filed with the SEC on November 23, 2021. Copies of the prospectus supplement and the accompanying prospectus relating to the registered direct offering may be obtained at the SEC's website www.sec.gov or by contacting Univest Securities, LLC by email at info@univest.us or standard mail to Univest Securities, LLC, 375 Park Avenue, 15th Floor, New York, NY 10022.

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

About China Xiangtai Food Co., Ltd.

Headquartered in Chongqing, China, China Xiangtai Food Co., Ltd., through the recent acquisition of Chongqing Ji Mao Cang Feed Co., Ltd, engages in the feed raw material and feed formula solutions wholesale and retail business. For more information, please visit http://ir.plinfood.com/.

Safe Harbor 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.

Company Contact

China Xiangtai Food Co., Ltd.
Email: ir@plinfood.com

Investor Relations Contact

Ms. Tina Xiao, President
Ascent Investor Relations LLC
Phone: +1-917-609-0333
Email: tina.xiao@ascent-ir.com

FAQ

What was the amount raised in the recent offering by PLIN?

China Xiangtai Food raised approximately US$16.5 million in its recent registered direct offering and concurrent private placement.

What will the funds from PLIN's offering be used for?

The funds will be used for product research and development, marketing, business development, and working capital.

What is the exercise price of the warrants issued by PLIN?

The warrants issued by PLIN have an exercise price of US$1.008.

How many ordinary shares were sold in the PLIN offering?

PLIN sold 17,175,412 ordinary shares in the registered direct offering.

What are the potential impacts of the offering on PLIN's shareholders?

The offering may lead to share dilution for existing shareholders due to the issuance of new shares and warrants.