Takung Art Co., Ltd Announces Closing of $5.0 Million Private Placement

Rhea-AI Summary

Takung Art Co., Ltd (NYSE American: TKAT) has successfully closed a private placement of 571,429 shares at a price of $8.75 each, raising approximately $5 million pre-expenses. The funds will be utilized for general corporate purposes and working capital. Maxim Group LLC was the placement agent for this transaction. The shares are unregistered under the Securities Act and will only be offered to accredited investors. Takung operates three online platforms for investing in fine art and collectibles, catering primarily to China's middle class.

Positive

• Raised approximately $5 million in gross proceeds from the private placement.
• Funds will support general corporate purposes and working capital.

Negative

• Shares were sold at a price of $8.75, which may indicate a discount from market rates.
• The shares are unregistered, limiting their immediate liquidity.

HONG KONG, CHINA , July 13, 2021 (GLOBE NEWSWIRE) -- Takung Art Co., Ltd (NYSE American: TKAT) (“Takung” “TKAT” or the “Company”), an operator of three online fine art and collectibles platforms, today announced the closing of its previously announced private placement of 571,429 shares of Common Stock at a purchase price of $8.75 per share. Gross proceeds were approximately $5 million, before deducting placement agent fees and other offering expenses. The Company currently intends to use the net proceeds from this offering for general corporate purposes and working capital.

Maxim Group LLC acted as the sole placement agent for the transaction.

The Common Stock described above have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (“SEC”) or an applicable exemption from such registration requirements. The shares of Common Stock were offered only to accredited investors. Pursuant to a registration rights agreement (the “RRA”) with the investor signed concurrently with the SPA, the Company has agreed to file an initial registration statement with the SEC covering the resale of the shares of Common Stock issued to the investor no later than 17 days after the date of the closing and to use best efforts to have the registration statement declared effective as promptly as practical thereafter, and in any event no later than 75 days after the closing in the event of a “full review” by the SEC.

This press release shall not constitute an offer to sell or the 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 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 Takung Art Co., Ltd

Takung Art Co., Ltd enables China's growing middle class to invest in fine art and collectibles through three proprietary online platforms: Takung Unit, which facilitates trading and shared ownership of Asian and international fine art; Unit+, which facilitates trading and shared ownership of Asian and international collectibles; and Takung Online, an e-commerce platform enabling artists to promote and sell entire pieces of artwork directly to buyers. Takung is headquartered in Hong Kong and operates primarily in Hong Kong through its direct wholly-owned subsidiary Hong Kong Takung Art Company Limited and its two wholly-owned subsidiaries in Shanghai and Tianjin that facilitate service and support to its PRC-based traders on the Company's platform. For more information, please visit the Company's website: http://ir.takungart.com/  The Company routinely posts important information on its website.

Forward-Looking Statements

This press release may contain projections or other forward-looking statements regarding future events or our future financial performance. All statements other than present and historical facts and conditions contained in this release, including any statements regarding our future results of operations and financial positions, business strategy, plans and our objectives for future operations, are forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). These statements are only predictions which reflect our current beliefs and expectations with respect to future events and are based on assumptions and subject to risk and uncertainties and are subject to change at any time. We operate in a very competitive and rapidly changing environment where new risks may emerge from time to time. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Actual events or results may differ materially from those contained in the projections or forward-looking statements.

Contact:

Takung Art Co., Ltd
King Chan
Phone: +85239035788
Email: irmail@takungae.com

FAQ

What was the total amount raised in the TKAT private placement?

Takung Art Co., Ltd raised approximately $5 million in its private placement.

Who acted as the placement agent for the TKAT transaction?

Maxim Group LLC was the sole placement agent for the TKAT private placement.

What is the purchase price of the TKAT shares in the private placement?

The purchase price for the TKAT shares in the private placement was $8.75 each.

How many shares were issued in the TKAT private placement?

A total of 571,429 shares were issued in the TKAT private placement.

What will TKAT use the net proceeds from its offering for?

Takung Art Co., Ltd intends to use the net proceeds for general corporate purposes and working capital.