China SXT Pharmaceuticals, Inc. Prices $3.5 Million Underwritten Public Offering of Ordinary Shares and Pre-Funded Warrants to Purchase Ordinary Shares

Rhea-AI Summary

China SXT Pharmaceuticals, Inc. (SXTC) announced a public offering of approximately 19.8 million ordinary shares, priced at $0.18 per share, aiming for gross proceeds of $3.5 million. An additional option allows underwriters to purchase 2.97 million shares, potentially raising proceeds to $4.1 million. The funds will support general corporate purposes and working capital. The offering's closing is anticipated on January 20, 2022, pending customary conditions. Aegis Capital Corp. is the sole book-running manager for this offering.

Positive

• Gross proceeds of approximately $3.5 million expected from the offering.
• Additional option for underwriters could raise total proceeds to $4.1 million.
• Intended use of funds includes working capital and business opportunities.

Negative

• Ordinary shares priced at $0.18 may indicate lower market confidence.
• Potential dilution of existing shareholders due to the issuance of new shares.

TAIZHOU, China, Jan. 18, 2022 (GLOBE NEWSWIRE) -- China SXT Pharmaceuticals, Inc. ("SXTC" or the "Company"), (NASDAQ: SXTC), a specialty pharmaceutical company focusing on the research, development, manufacturing, marketing, and sales of Traditional Chinese Medicine Pieces ("TCMPs"), including Advanced TCMPs (Directly-Oral TCMP and After-Soaking-Oral TCMP), fine TCMPs, regular TCMPs, and TCM Homologous Supplements ("TCMHS"), today announced the pricing of an underwritten public offering of its ordinary shares and prefunded warrants to purchase ordinary shares, with gross proceeds to the Company expected to be approximately $3.5 million, before deducting underwriting discounts and commissions and other estimated expenses payable by the Company. The Offering equates to 19,806,760 of the Company's ordinary shares at a price of $0.18 per share. The pre-funded warrants are offered at the same price per share as the ordinary shares, less the $0.01 per share exercise price of each pre-funded warrant. The Company intends to use the net proceeds from this offering for general corporate purposes, including, but not limited to, working capital and other business opportunities.

In addition, the Company granted the underwriters a 45-day option to purchase 2,971,014 additional ordinary shares at the public offering price to cover over-allotments, if any. If this option is exercised in full, the gross proceeds of the over-allotment would be approximately $4.1 million before deducting underwriting discounts, commissions and other offering expenses.

The closing of the Offering is expected to occur on January 20, 2022, subject to customary closing conditions.

Aegis Capital Corp. is acting as the sole book-running manager for the offering.

This offering is being made pursuant to an effective shelf registration statement on Form F-3 (No. 333-252664) previously filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on February 10, 2021. A preliminary prospectus supplement has been filed and accompanying prospectus describing the terms of the proposed offering will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov. Electronic copies of the preliminary prospectus supplement and the accompanying prospectus may be obtained, when available, by contacting Aegis Capital Corp., Attention: Syndicate Department, 810 7th Avenue, 18th floor, New York, NY 10019, by email at syndicate@aegiscap.com, or by telephone at (212) 813-1010. 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 prospectus, which provide more information about the Company and such offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy 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 China SXT Pharmaceuticals, Inc.

Founded in 2005 and headquartered in Taizhou City, Jiangsu Province, China, China SXT Pharmaceuticals, Inc. is an innovative pharmaceutical company focusing on the research, development, manufacture, marketing and sales of traditional Chinese medicine pieces, which is a type of Traditional Chinese Medicine that has been processed to be ready for use. For more information, please visit www.sxtchina.com.

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. Specifically, the Company's statements regarding the closing of the proposed private placement are 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; product and service demand and acceptance; changes in technology; the growth of the pharmaceutical market, particularly the Traditional Chinese Medicine Pieces ("TCMPs") market, in China; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and the international markets the Company serves and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission. 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 U.S. Securities and Exchange Commission, 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.

CONTACT:
Name: Feng Zhou
Email: fzhou@sxtchina.com

FAQ

What is the purpose of the public offering by China SXT Pharmaceuticals (SXTC)?

The public offering aims to raise funds for general corporate purposes, including working capital and potential business opportunities.

How many shares is China SXT Pharmaceuticals offering in the recent public offering?

China SXT Pharmaceuticals is offering approximately 19.8 million ordinary shares in this public offering.

What is the expected closing date for the SXTC public offering?

The expected closing date for the public offering is January 20, 2022.

What is the offering price for the shares in the SXTC public offering?

The offering price for the shares in the SXTC public offering is $0.18 per share.

Who is managing the public offering for China SXT Pharmaceuticals?

Aegis Capital Corp. is acting as the sole book-running manager for the public offering.