Ebang International Announces Completion of Follow-on Public Offering and Exercise of Warrants for Approximately $72.4 Millio...
February 22 2021 - 9:15AM
Ebang International Holdings Inc. (Nasdaq: EBON, the “Company,”
“we” or “our”), a blockchain technology company in the global
market, today announced the completion of the previously announced
offering by and between the Company and several institutional
investors (the “Investors”), and the sale of an additional 5.2
million units (“Units,” each, a “Unit”) for a total of 19.2 million
Units, all of which were registered pursuant to the Registration
Statement on Form F-1 (File No. 333-252804), as amended by Form
F-1MEF (File No. 333-252979)(the “Registration Statement”). The
Company intends to use the net proceeds from the offering primarily
for research, development, production and sales of ASICs and
equipment related to cryptocurrencies, expansion of its
cryptocurrency mining business as well as establishment and
operation of cryptocurrency mining farms, and general corporate
purposes, which may include working capital needs and other
corporate uses.
The Company also announced that on February 22,
2021, it entered into inducement agreements with the Investors to
induce them to exercise certain warrants to purchase up to an
aggregate of 13.6 million Class A ordinary shares issued by the
Company as part of the prior two offerings during November 2020 to
February 2021 at an exercise prices of $5.50 and $5.25
respectively.
The gross proceeds to the Company from the
exercise of the warrants are expected to be approximately $72.4
million, prior to deducting solicitation agent fees and estimated
offering expenses.
In consideration for the immediate exercise of
the warrants for cash, the Investors will receive new, unregistered
warrants to purchase the Company’s Class A ordinary shares (the
“New Warrants”) in a private placement pursuant to Section 4(a)(2)
of the Securities Act of 1933, as amended (the “1933 Act”). The New
Warrants will be exercisable for an aggregate of up to 13.6 million
Class A ordinary shares, at an exercise price of $11.06 per share,
which have a term of exercise equal to five years.
The Company has agreed to file a registration
statement with the SEC covering the resale of the Class A ordinary
shares issuable upon exercise of the New Warrants.
Univest Securities, LLC is acting as the
representative of the solicitation agents including Lake Street
Capital Markets, LLC in connection with the solicitation of the
warrant exercises by the Investors and the issuance of the New
Warrants.
This press release shall not constitute an offer
to sell or a solicitation of an offer to buy 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 the
registration or qualification under the securities laws of any such
state or jurisdiction.
About Ebang International Holdings
Inc.
Ebang International Holdings Inc. is a
blockchain technology company with strong application-specific
integrated circuit (ASIC) chip design capability. With years of
industry experience and expertise in ASIC chip design, it has
become a leading bitcoin mining machine producer in the global
market with steady access to wafer foundry capacity. With its
licensed or registered entities in various jurisdictions, the
Company seeks to launch a professional, convenient and innovative
digital asset financial service platform to expand into the
upstream and the downstream of blockchain and cryptocurrency
industry value chain. For more information, please
visit https://ir.ebang.com.cn/.
Safe Harbor Statement
This press release contains forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and as defined in the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, without limitation, the
Company’s development plans and business outlook, which can be
identified by terminology such as “may,” “will,” “expects,”
“anticipates,” “aims,” “potential,” “future,” “intends,” “plans,”
“believes,” “estimates,” “continue,” “likely to” and other similar
expressions. Such statements are not historical facts, and are
based upon the Company’s current beliefs, plans and expectations,
and the current market and operating conditions. Forward-looking
statements involve inherent known or unknown risks, uncertainties
and other factors, all of which are difficult to predict and many
of which are beyond the Company’s control, which may cause the
Company’s actual results, performance and achievements to differ
materially from those contained in any forward-looking statement.
Further information regarding these and other risks, uncertainties
or factors is included in the Company's filings with the U.S.
Securities and Exchange Commission. These forward-looking
statements are made only as of the date indicated, and the Company
undertakes no obligation to update or revise the information
contained in any forward-looking statements as a result of new
information, future events or otherwise, except as required under
applicable law.
Investor Relations Contact
For investor and media inquiries, please
contact:
Ebang International Holdings
Inc.Email: ir@ebang.com.cn
Ascent Investor Relations LLCMs. Tina XiaoTel:
(917) 609-0333Email: tina.xiao@ascent-ir.com
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