ChinaNet Online Holdings Inc (NASDAQ: CNET) is rocketing in the market this morning, trading on gains of more than 20% early on. The gains come after the company announced the completion of a private placement, driving significant funding through the doors. Here’s what’s happening:
CNET Flies After Announcing Private Placement News
In a press release issued early this morning, ChinaNet Online Holdings announced the closing of the second half of a private placement. The placement took place with a select group of investors as outlined by the Securities Purchase Agreement entered into on August 7, 2019.
In the release, CNET said that it issued 1,608,430 shares of common stock in connection with the transaction. As a result, the company has raised about $2.4 million. Under the aforementioned agreement, the company has issued a total of 3,216,860 shares of common stock and raised $4.8 million in the process.
Shares of common stock sold as part of this placement were sold at a price of $1.4927 per share. In a statement, Mr. Handong Cheng, Chairman, President and CEO at CNET, had the following to offer:
The completion of the private placement from our strategic investors marks a major milestone in our efforts to unlock ChinaNet’s future growth potential. As we continue to work towards expanding our business both at home and abroad, the integration of our strategic investors’ commercial and technological resources will help to fuel our growth engine.
Additionally, our strengthened capital position will bolster our ability to weather current macro headwinds and enable us to prudently invest in the development of new revenue streams outside of the domestic market. Going forward, we are confident that the combination of our strategic partners’ resources and experience as a leading online advertising and data-analysis service provider will position us well to seize the tremendous growth opportunities both in China and on a global scale.
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