China Xiangtai Food Company Limited said it has entered into a securities purchase agreement with certain investors to sell US$16.5 million of its ordinary shares in a registered direct offering and ordinary share purchase warrants in a concurrent private placement.
The company said it plans to use the net proceeds from the offering for product research and development, marketing and business development, new business assessment and acquisition, talent acquisition and training, and working capital and general business purposes.
READ: China Xiangtai Food Co sees its fiscal 2020 revenue rise over 11% to nearly $111 million
Under the terms of the securities purchase agreement, it said it has agreed to sell 17,175,412 ordinary shares in a registered direct offering and warrants to purchase 17,175,412 ordinary shares in a concurrent private placement.
The warrants will be exercisable 60 days from the date of issuance with an exercise price of US$1.008 and will expire five years from the date of issuance. The purchase price for one ordinary share and one corresponding warrant will be US$0.96. The gross proceeds to the company are estimated to be US$16.5 million before deducting placement agent fees and other estimated offering expenses.
The company said the direct offering and the concurrent private placement are expected to close on or about November 24, 2021, subject to satisfaction of customary closing conditions.
Univest Securities LLC is acting as the exclusive placement agent for this offering, while Ortoli Rosenstadt LLP serves as counsel to the company, and Hunter Taubman Fischer & Li LLC serves as counsel to Univest Securities in connection with the offering.
China Xiangtai Food Company’s operations span the pork processing value chain, including slaughtering, packing, distribution, and wholesale of fresh pork meat and parts.
Although the company is focused on pork products, it also sells other fresh and processed products including beef, lamb, poultry, rabbit, and duck meat.
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