AIFU Inc. (NASDAQ: AIFU), shares began Monday down sharply. This, as the Guangzhou, China-based company, AI-driven independent financial services platform announced that it has entered into a definitive share purchase agreement with certain investors, pursuant to which the investors have agreed to subscribe for, and the Company has agreed to issue and sell to the investors, (i) an aggregate of 10,000,000 Class A ordinary shares, par value US$0.4 per share, of the Company, at a price of $3.156 per share, and (ii) a warrant to purchase up to 20,000,000 additional Class A ordinary shares of the Company.
50% of the warrant will be exercisable at 200% of the Per Share Purchase Price, with the remaining 50% exercisable at 250%. The transaction is expected to generate approximately $31.6 million in gross proceeds from the Share Issuance.
Upon closing of the Share Issuance, the Company will have a total of 15,870,271 ordinary shares outstanding, consisting of 13,370,271 Class A ordinary shares and 2,500,000 Class B ordinary shares. Assuming no exercise of the warrant, the two largest investors in this transaction are expected to hold approximately 24.6% and 19.5% of the Company’s total outstanding shares, respectively, representing 1.5% and 1.2% of the total voting power, respectively.
The Share Issuance is expected to close by the end of July 2025, subject to the satisfaction of customary closing conditions.
AIFU shares dumped $1.43, or 20.6% to $5.51.
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