China Xiangtai Food Co., Ltd. Announces Pricing of US$16 Million Registered Direct Offering and Concurrent Private Placement

Rhea-AI Summary

China Xiangtai Food Co., Ltd. (NASDAQ: PLIN) has announced a securities purchase agreement to raise up to US$16,130,716 through the sale of 18,124,400 ordinary shares and warrants. The offering price is set at US$0.89 per share and warrant, with an exercise price of US$1.008 for the warrants exercisable within 60 days.

The funds will be allocated for business assessment, acquisitions, research and development, and working capital. The offering is expected to close around February 2, 2022.

Positive

• Plans to use net proceeds for business development and acquisitions.
• The offering structure allows for potential capital appreciation through warrants.

Negative

• Dilution of existing shareholders due to the issuance of additional shares.
• The offering may reflect ongoing financial needs, raising concerns among investors.

CHONGQING, China, Jan. 31, 2022 (GLOBE NEWSWIRE) -- China Xiangtai Food Co., Ltd. (NASDAQ: PLIN) ("China Xiangtai" or the "Company"), an emerging growth company engaged in agricultural business with a diversified expansion strategy, today announced that it entered into a securities purchase agreement with certain investors to sell up to US$16,130,716 of its ordinary shares in a registered direct offering and ordinary share purchase warrants in a concurrent private placement.

Under the terms of the securities purchase agreement, the Company has agreed to sell 18,124,400 ordinary shares in a registered direct offering and warrants to purchase 18,124,400 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 will be US$0.89. The gross proceeds to the Company are estimated to be US$16,130,716 before deducting placement agent fees and other estimated offering expenses. The Company plans to use the net proceeds from the offering for new business assessment and acquisition, product research and development, marketing and business development, and working capital and general business purposes.

The registered direct offering and the concurrent private placement are expected to close on or about February 2, 2022, subject to satisfaction of customary closing conditions.

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

The sale of the ordinary shares in the registered direct offering is being made pursuant to a shelf registration statement on Form F-3 (File No. 333-238700), 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 will be filed with the SEC. When available, 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, 75 Rockefeller Plaza Suite 1838, New York, NY 10019.

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 base prospectus, which provide more information about the Company and such offering. 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.
China Xiangtai Food Co., Ltd., engages in agricultural business. The Company is actively deploying emerging technologies including crypto asset mining and blockchain technologies with diversified expansion strategy. The current operations are in the United States, Canada and China. For more information, please visit https://irplin.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, including the closing of the offering, 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.
Erick W. Rengifo
Phone: +1-347-556-4747
Email: ir@irplin.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 is the purpose of the securities purchase agreement announced by PLIN?

China Xiangtai plans to use the proceeds for business assessment, acquisitions, research and development, and working capital.

When is the expected closing date for the offering by PLIN?

The registered direct offering is expected to close on or about February 2, 2022.

How much is China Xiangtai Food Co., Ltd. raising in its latest offering?

The company intends to raise up to US$16,130,716 through the sale of ordinary shares and warrants.

What are the terms of the warrants in the PLIN offering?

The warrants will be exercisable for 60 days from issuance at an exercise price of US$1.008.

What price per ordinary share is being offered in the PLIN direct offering?

Each ordinary share and corresponding warrant is priced at US$0.89.