XChange TEC.INC Announces Entry into $25.0 Million Committed Equity Facility with VG Master Fund SPC
Rhea-AI Summary
XChange TEC.INC (NASDAQ: XHG) has announced its entry into a $25.0 million Committed Equity Facility with VG Master Fund SPC on September 24, 2024. The agreement allows XChange TEC to sell up to $25.0 million of American Depositary Shares (ADSs) to VG, with each ADS representing 600,000 Class A Ordinary Shares. Key points include:
1. The timing and execution of sales are at XChange TEC's discretion.
2. The company is not obligated to sell any securities under the agreement.
3. The offering has been registered through a prospectus supplement filed with the SEC on September 24, 2024.
4. The supplement is linked to a shelf registration statement on Form F-3 (File No. 333-258187) filed on September 29, 2022 and declared effective on October 26, 2022.
Positive
- Secured $25.0 million Committed Equity Facility
- Flexibility in timing and execution of ADS sales
- No obligation to sell securities, providing financial control
Negative
- Potential dilution of existing shareholders if ADSs are sold
News Market Reaction
On the day this news was published, XHG gained 93.70%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
The offering and sale of the ADSs by the Company to VG pursuant to the Purchase Agreement has been registered pursuant to a prospectus supplement, which was filed by the Company with the Securities and Exchange Commission (the "SEC") on September 24, 2024, to a shelf registration statement on Form F-3 (File No. 333-258187), which was filed with the SEC on September 29, 2022 and declared effective on October 26, 2022.
About XChange TEC.INC
XChange TEC.INC, through its subsidiaries and consolidated variable interest entities, operates insurance agency and insurance technology business. The insurance agency is PRC-licensed and operates nationwide in the PRC with a wide range of insurance products underwritten by major insurance companies, including industry leading and/or state-owned property and casualty insurance companies as well as certain regional property and casualty insurance companies in
Forward-Looking Statements
This press release contains forward-looking statements. 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. The Company's actual results may differ materially from those expressed in any forward-looking statements as a result of various factors and uncertainties. The reports filed by the Company with the Securities and Exchange Commission discuss these and other important factors and risks that may affect the Company's business, results of operations and financial conditions. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
View original content:https://www.prnewswire.com/news-releases/xchange-tecinc-announces-entry-into-25-0-million-committed-equity-facility-with-vg-master-fund-spc-302257141.html
SOURCE XChange TEC.INC
FAQ
What is the value of XChange TEC.INC's (XHG) new Committed Equity Facility?
How many Class A Ordinary Shares does each ADS represent for XHG?
When was the shelf registration statement for XHG's equity facility declared effective?
Is XHG obligated to sell securities under the new equity facility agreement?
