SRIVARU (SVMH) Announces Closing of Upsized $6.8 Million Underwritten Public Offering

Rhea-AI Summary

SRIVARU Holding (Nasdaq: SVMH) has completed its upsized public offering, raising approximately $6.8 million in gross proceeds. The offering consisted of 106,250,000 units priced at $0.064 per unit, with each unit comprising one ordinary share and one warrant. The warrants are exercisable at $0.096 per share upon shareholder approval and expire after five years. The underwriters have a 45-day option to purchase up to an additional 15,937,500 ordinary shares and warrants. Maxim Group served as the sole book-running manager for the offering.

Positive

• Successfully raised $6.8 million in gross proceeds
• Included over-allotment option for additional shares and warrants
• Warrants provide potential for additional future capital through exercise

Negative

• Significant shareholder dilution due to large number of units issued
• Low unit pricing at $0.064 indicates potential market weakness
• Additional dilution possible if over-allotment option is exercised
• Future dilution risk from warrant exercises

Insights

Financial Analyst

The $6.8 million public offering represents a significant capital raise for SRIVARU, though at a notably low price point of $0.064 per unit. The substantial dilution from issuing 106.25 million units, plus potential additional dilution from the over-allotment option and warrant exercises, signals considerable pressure on the stock's value. The warrant exercise price at $0.096 sets a modest 50% premium to the offering price.

The structure combining shares with warrants and including an alternative cashless exercise provision suggests aggressive financing terms, likely reflecting challenging market conditions for the company. With a market cap around $13.3 million, this offering significantly impacts the capital structure. The immediate separability of shares and warrants could lead to increased trading volatility.

GRAND CAYMAN, Cayman Islands, Oct. 31, 2024 (GLOBE NEWSWIRE) -- SRIVARU Holding Limited (Nasdaq: SVMH, SVMHW) (“SRIVARU” or the “Company”), a manufacturer of premium electric motorcycles, today announced the closing of its previously announced public offering of 106,250,000 units at a public offering price of $0.064 per unit. Each unit consists of one ordinary share and one warrant to purchase one ordinary share, which can be exercisable for two ordinary shares pursuant to an alternative cashless exercise provision. In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 15,937,500 ordinary shares and 15,937,500 warrants to cover over-allotments at the public offering price, less the underwriting discount. The warrants will be exercisable on the date of shareholder approval at a price of $0.096 per share and will expire five years from the date of shareholder approval. The ordinary shares and accompanying warrants could only be purchased together in this public offering, but were issued separately and were immediately separable upon issuance. Gross proceeds to the Company, before deducting underwriting commissions and other offering expenses, were approximately $6.8 million.

Maxim Group LLC acted as sole book-running manager in connection with the offering.

A registration statement on Form F-1 (File No. 333-282429) was filed with the U.S. Securities and Exchange Commission (“SEC”), and was declared effective by the SEC on October 29, 2024. A final prospectus relating to the offering was filed with the SEC and is available on the SEC’s website at http://www.sec.gov. The offering was made only by means of a prospectus forming part of the effective registration statement. Electronic copies of the prospectus relating to this Offering may also be obtained from Maxim Group LLC, 300 Park Avenue, 16th Floor, New York, New York 10022, Attention: Syndicate Department, by telephone at (212) 895-3745 or by email at syndicate@maximgrp.com.

This press release shall not constitute an offer to sell or a 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 other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About SRIVARU 

SRIVARU Holding Limited, a Cayman Islands exempted company, is the parent company of SRIVARU Motor Private Ltd., a commercial-stage provider dedicated to designing and manufacturing premium electric motorcycles in India. SRIVARU was founded on the realization that while the rider-motorcycle relationship is deep and complex, it is in desperate need of innovation for the next generation of riders. SRIVARU provides affordable premium E2W vehicles that provide an exceptional riding experience with redundant 3-channel automated braking, a low center of gravity to improve stability, enhanced safety features, and easy charging compatible with home charging outlets. The Company has a broad array of intellectual property, including a patent-pending chassis and drive acceleration system. In addition, SRIVARU offers customers a superior total cost of ownership compared to traditional internal combustion engine motorcycles and E2W vehicle competitors. SRIVARU additionally oversees a manufacturing subsidiary set to play a crucial role in achieving the company’s vision for sustainable and innovative mobility. Additional information about the company is available at: http://www.srivarumotors.com/. With a focus on innovation, sustainability, and performance, SRIVARU aims to redefine the future of mobility.

Forward Looking Statements

This communication may contain a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning SRIVARU’s possible or assumed future results of operations, business strategies, debt levels, competitive position, industry environment, potential growth opportunities and the effects of regulation, respectively. These forward-looking statements are based on SRIVARU’s management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. When used in this communication, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.

These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside SRIVARU’s management’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. These risks, uncertainties, assumptions and other important factors include, but are not limited to: (a) the outcome of any legal proceedings that may be instituted against SRIVARU or others; (b) the inability to obtain financing to complete the Company’s planned expansion; (c) the inability to successfully appeal the Nasdaq’s delisting determinations; (d) the risk that current plans and operations of SRIVARU or its subsidiaries may be disrupted; (e) the ability to recognize the anticipated benefits of the Business Combination, which may be affected by, among other things, competition; (f) the ability of SRIVARU to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (g) costs related to ongoing operations; (h) the possibility that SRIVARU may be adversely affected by other economic, business, and/or competitive factors; (i) SRIVARU’s ability to execute its business plans and strategies, (j) SRIVARU’s estimates of expenses and profitability; and (k) other risks and uncertainties indicated from time to time in SRIVARU’s public filings with the SEC, including those under “Risk Factors” therein.

Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and SRIVARU assumes no obligation and, except as required by law, do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Company Details: 

SRIVARU Holding Limited 
3rd Floor, Genesis House, Unit 18
Genesis Close, George Town
P.O. Box 10655 
Grand Cayman, KY1-1006 
Cayman Islands 

Investor & Media Contact: 

Investor Relations
SRIVARU Holding Limited 
Email: ir@srivarumotors.com 
Phone: +1 (888) 227-8066 

FAQ

How much did SRIVARU (SVMH) raise in its public offering?

SRIVARU (SVMH) raised approximately $6.8 million in gross proceeds through its public offering.

What was the price per unit in SVMH's October 2024 offering?

The units were priced at $0.064 per unit in the offering.

What did each unit in SRIVARU's public offering include?

Each unit consisted of one ordinary share and one warrant to purchase one ordinary share.

When do the SVMH warrants expire?

The warrants will expire five years from the date of shareholder approval.