CHENGDU, China, June 18, 2019 /PRNewswire/ -- Senmiao Technology
Limited (Senmiao) (NASDAQ: AIHS), an operator of an online lending
marketplace connecting Chinese investors with individual and
small-to-medium-sized enterprise borrowers, and a provider of
automobile transactions and related services in China, announced today that it has entered
into a securities purchase agreement with six (6) accredited
investors with respect to a registered direct public offering of
approximately $6.0 million of shares
of common stock at a price of $3.38
per share. The Company will issue an aggregate of 1,781,361 shares
of common stock to such accredited investors. The Company will also
issue to the accredited investors Series A warrants to purchase up
to 1,336,021 shares of common stock at an exercise price of
$3.72 per share. Such warrants will
have a term of four (4) years from the date of issuance. On the six
(6)-month anniversary of the initial issuance date of the Series A
warrants, if the average volume weighted average price during the
ten (10) trading days prior to such anniversary ("New Exercise
Price") is less than the $3.72
exercise price, then such exercise price shall have one-time price
adjustment equal to the New Exercise Price; provided, however, in
no event, shall the New Exercise Price be less than $1.50 per share. The Series A warrants will also
be subject to price adjustments for future discounted issuances
below the exercise price. Additionally, the accredited investors
will also receive pre-funded Series B warrants to purchase shares
of common stock. Such warrants will have a term of one (1) years
from the date of issuance. If on the 50th day after the closing
date of the transaction, the closing market price of the Company's
common stock is less than $3.38, the
investors shall have the right to exercise the Series B warrants
for nominal consideration. The number of shares of common stock to
be issued to the investors upon exercise of the Series B warrants
shall be determined based on a 20% discount to the market price of
the Company's common stock immediately preceding such date, but in
no event, shall the aggregate number of shares of common stock
underlying the Series B warrants be greater than 1,116,320 shares
of common stock.
The completion of the offering is expected to occur on or about
June 19, 2019, subject to the
satisfaction of customary closing conditions.
FT Global Capital, Inc. acted as the exclusive placement agent
in connection with the offering.
These securities are being offered through a prospectus
supplement pursuant to the Company's effective shelf registration
statement and base prospectus contained therein. A shelf
registration statement relating to these securities has been filed
with and declared effective by the Securities and Exchange
Commission (the "SEC"), which became effective on April 15, 2019, and is available on the SEC's
website located at http://www.sec.gov. A prospectus
supplement related to the offering will be filed with the SEC.
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.
About Senmiao
Headquartered in Chengdu,
Sichuan Province, Senmiao operates
an online lending platform, which connects Chinese investors with
individual and small-to-medium-sized enterprise borrowers. Senmiao
also owns a majority interest in a Chinese automobile financial
leasing services and automobile sales company offering sales,
facilitation, purchase services, management, guarantee and other
automobile transaction services. For more information about
Senmiao, please visit: http://www.senmiaotech.com/index.
Cautionary Note Regarding Forward-Looking Statements
This press release of Senmiao Technology Limited (Senmiao)
contains forward-looking statements as defined by the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements include statements concerning the Chinese online P2P
industry, the development of Senmiao's automobile transaction and
financing services and the Chinese vehicle financial leasing
market, and Senmiao's plans, objectives, goals, strategies, and
performance, as well as the assumptions such statements and other
statements that are not statements of historical facts. When
Senmiao uses words such as "may," "will," "intend," "should,"
"believe," "expect," "anticipate," "project," "estimate" or similar
expressions that do not relate solely to historical matters, it is
making forward-looking statements. Forward-looking statements are
not guarantees of future performance and involve risks and
uncertainties that may cause actual results to differ materially
from Senmiao's expectations, including, but not limited to, risks
and uncertainties relating to the following: the risk that
the anticipated growth of the Company's automobile transaction and
financing services may not be realized; Senmiao's future business
development; product and service demand and acceptance; changes in
technology; economic conditions; reputation and brand; the impact
of competition and pricing; the impact of government regulations;
fluctuations in general economic and business conditions in
China and other risks expressed in
reports filed by Senmiao with the U.S. Securities and Exchange
Commission. For these reasons, among others, investors are
cautioned not to place undue reliance on any forward-looking
statements. Senmiao's filings with the U.S. Securities and Exchange
Commission are available for review at www.sec.gov. Senmiao
undertakes no obligation to publicly revise any forward-looking
statements to reflect changes in events or circumstances.
For more information, please contact:
At the Company:
Julie Zhu
Email: julie@ihongsen.com
Phone: +86-181-9085-0098
Investor Relations:
Tony
Tian, CFA
Weitian Group LLC
Email: ttian@weitianco.com
Phone: +1-732-910-9692
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SOURCE Senmiao Technology Limited