ZW Data Action Technologies Inc. Announces Pricing of $7.0 Million Registered Direct Offering of Common Stock and Warrants
December 10 2020 - 9:15AM
ZW Data Action Technologies Inc.(NASDAQ:CNET) ("ZW Data" or the
"Company"), an integrated online advertising, precision marketing
and data analytics and other value-added services
company, today announced that it has entered into a securities
purchase agreement with three institutional investors for a
registered direct placement of approximately $7.0 million of shares
of common stock of the Company at a price of $1.62 per share. The
Company will issue a total of 4,320,988 shares of common stock to
the institutional investors. As part of the transaction, the
Company will also issue to the investors warrants to purchase up to
1,728,395 shares of common stock at an exercise price of $2.03 per
share, which warrants will have a term of three years and not be
exercisable for the first six months from the date of issuance.
The net proceeds from this offering are expected to be
approximately $6.3 million and will be used for general working
capital purposes. If the warrants are exercised in full, the
Company will receive additional proceeds of approximately $3.5
million. The completion of the placement is expected to occur on or
about December 14, 2020, subject to the satisfaction of customary
closing conditions.
FT Global Capital, Inc. acted as the exclusive placement
agent in connection with the offering.
The Company's Common Stock, Warrants and shares of Common Stock
underlying the Warrants (the “Securities”) are being offered by in
a registered direct offering pursuant to a "shelf" registration
statement on Form S-3 (File No. 333-228061) previously filed with
the Securities and Exchange Commission (the "SEC") declared
effective by the SEC on August 3, 2020. The Securities may be
offered only by means of a prospectus, including a prospectus
supplement, forming a part of the effective registration statement.
Once filed with the SEC, copies of the prospectus supplement and
accompanying prospectus relating to the registered direct offering
may be obtained, when available, on the SEC's website at
http://www.sec.gov or by contacting the Company at Room 1106,
Xinghuo Keji Plaza, No. 2 Fengfu Road, Fengtai District, Beijing,
PRC 100070, or telephone at +86-10-60846616.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities, in any state or other 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 other jurisdiction.
For further details of this transaction, please see the Form 8-K
to be filed with the SEC.
About ZW Data Action
Technologies Inc.Established in 2003 and
headquartered in Beijing, China, ZW Data Action Technologies Inc.
(the “Company”) offers online advertising, precision marketing,
data analytics and other value-added services for enterprise
clients. Leveraging its fully integrated services platform,
proprietary database, and cutting-edge algorithms, ZW Data Action
Technologies delivers customized, result-driven business solutions
for small and medium-sized enterprise clients in China. The Company
also develops blockchain and artificial intelligence enabled
web/mobile applications and software solutions for general public,
enterprise clients, and government agencies. More information about
the Company can be found at: http://www.zdat.com/.
Safe HarborThis release contains certain
"forward-looking statements" relating to the business of ZW Data
Action Technologies Inc., which can be identified by the use of
forward-looking terminology such as "believes," "expects,"
"anticipates," "estimates" or similar expressions. Such
forward-looking statements involve known and unknown risks and
uncertainties, including business uncertainties relating to
government regulation of our industry, market demand, reliance on
key personnel, future capital requirements, competition in general
and other factors that may cause actual results to be materially
different from those described herein as anticipated, believed,
estimated or expected. Certain of these risks and uncertainties are
or will be described in greater detail in our filings with the
Securities and Exchange Commission. These forward-looking
statements are based on ZW Data Action Technologies current
expectations and beliefs concerning future developments and their
potential effects on the Company. There can be no assurance that
future developments affecting ZW Data Action Technologies will be
those anticipated by ZW Data Action Technologies. These
forward-looking statements involve a number of risks, uncertainties
(some of which are beyond the control of the Company) or other
assumptions that may cause actual results or performance to be
materially different from those expressed or implied by such
forward-looking statements. ZW Data Action Technologies undertakes
no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as may be required under applicable securities
laws.
For more information please contact:
Sherry ZhengWeitian Group LLCEmail:
shunyu.zheng@weitian-ir.comPhone: +1 718-213-7386
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