China Finance Online announces $13.2m Private Placement of Ordinary Shares and Warrants

By Leandra Monteiro

China Finance Online Co. Limited, a web-based financial services company that provides Chinese individual investors with FinTech-powered online access to securities trading services, wealth management products, securities investment advisory services, as well as financial database and analytics services to institutional customers, announced that it has entered into certain securities purchase agreements with certain accredited investors and the Company’s senior management persons for private placements of 110 million Company’s ordinary shares (or 2,200,000 ADS) for an aggregate consideration of $13.2 million at a per share price equals to $6.00 per ADS, each representing 50 ordinary shares of the Company.

In addition, pursuant to the securities purchase agreements, the Company will issue to the investors a warrant to purchase up to 110 million ordinary shares (or 2,200,000 ADS) in aggregate, at an exercise price equals to $7.60 per ADS. These warrants will be exercisable in whole or in part for 5 years, and subject to certain conditions and adjustments.

These transactions are subject to customary closing conditions, including shareholder’s approval, and the closings are expected to take place in the near future. The securities sold in the private placements have not been registered under the Securities Act of 1933, as amended, or state securities laws as of the time of issuance and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission or an applicable exemption from such registration requirements. The investors agree to enter into a lock-up agreement for a lock-up period of 180 days from the closing. China Finance Online agrees to use commercially reasonable efforts to file a registration statement in connection with the ordinary shares issued in these transactions.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state.