HONG KONG, April 12, 2017 /PRNewswire/ -- SGOCO Group, Ltd.
(NASDAQ: SGOC), a company focused on product design, distribution
and brand development in the Chinese display and computer product
market as well as energy saving products and services worldwide,
today announced the closing of its previously announced
$1,000,000 registered direct
offering. As previously disclosed, SGOCO Group, Ltd. (the
"Company") sold to certain institutional investors (the
"Investors") up to $1,000,000 of our
ordinary shares and warrants for a per share purchase price of
$2.30. The warrants to purchase our
ordinary shares are being issued to Investors in amount equal to
75% of the shares purchased by each Investor. The warrants are
exercisable beginning on the date of issuance, and at any time up
to four years from the date of issuance. Each warrant represents
the right to purchase one ordinary share at an initial exercise
price equal to $2.75 per share. The
initial exercise price and the amount of shares issuable under the
warrants are subject to adjustment upon the occurrence of certain
events; provided that in no event will the exercise price per share
be lower than $1.00.
The securities were offered and sold by the Company pursuant to
an effective shelf registration statement on Form F-3 (File No.
333-214141), which was originally filed with the Securities and
Exchange Commission on October 17,
2016, amended on December 23,
2016, and was declared effective on January 4, 2017, and a related prospectus and
prospectus supplement. A prospectus supplement relating to the
offering has been filed with the SEC and is available on the SEC's
website at http://www.sec.gov.
The Company intends to use the net proceeds from the transaction
to fund working capital and other general corporate purposes.
FT Global Capital, Inc., is serving as our placement agent in
connection with the offering.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, and these securities cannot be
sold in any state in which this offer, solicitation, or sale would
be unlawful prior to registration or qualification under the
securities laws of any such state.
About SGOCO Group, Ltd.
SGOCO Group, Ltd. is focused on product design, brand
development and distribution in the Chinese display and computer
product market as well as energy saving products and services.
SGOCO sells its products and services in the Chinese market and
abroad. For more information about SGOCO, please visit our investor
relations website: http://www.sgocogroup.com.
For investor and media inquiries, please contact:
SGOCO Group, Ltd.
Tony Zhong
Vice President of Finance
Tel: +86-755-26978199 ext:7500
Email: ir@sgoco.com
Safe Harbor and Informational Statement
This announcement contains "forward-looking" statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. All statements,
other than statements of historical fact, including, without
limitation, those with respect to the objectives, plans and
strategies of the Company set forth herein and those preceded by or
that include the words "believe," "expect," "anticipate," "future,"
"will," "intend," "plan," "estimate" or similar expressions, are
"forward-looking statements". Forward-looking statements in this
release include, without limitation, the effectiveness of the
Company's multiple-brand, multiple channel strategy and the
transitioning of its product development and sales focus and to a
"light-asset" model, Although the Company's management believes
that such forward-looking statements are reasonable, it cannot
guarantee that such expectations are, or will be, correct. These
forward looking statements involve a number of risks and
uncertainties, which could cause the Company's future results to
differ materially from those anticipated. These forward-looking
statements can change as a result of many possible events or
factors not all of which are known to the Company, which may
include, without limitation, our ability to have effective internal
control over financial reporting; our success in designing and
distributing products under brands licensed from others; management
of sales trend and client mix; possibility of securing loans and
other financing without efficient fixed assets as collaterals;
changes in government policy in China; China's overall economic conditions and local
market economic conditions; our ability to expand through strategic
acquisitions and establishment of new locations; compliance with
government regulations; legislation or regulatory environments;
geopolitical events, and other events and/or risks outlined in
SGOCO's filings with the U.S. Securities and Exchange Commission,
including its annual report on Form 20-F and other filings. All
information provided in this press release and in the attachments
is as of the date of the issuance, and SGOCO does not undertake any
obligation to update any forward-looking statement, except as
required under applicable law.
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SOURCE SGOCO Group, Ltd.