Chinanet Online Holdings Inc (NASDAQ:CNET) has closed a registered direct offering as per a previously reported securities purchase deal with certain institutional investors, raising around $11 million from offering its common stock for $5.15 per share. After subtracting offering expenses, the net proceeds are planned to be utilized for general working capital purposes.
Chinanet Online Holdings issued a total of around 2.15 million shares to institutional investors. Following this deal, the firm even issued warrants for purchase that amounted up to 645,000 common shares at exercise rate of $6.60 a share. FT Global Capital was the exclusive placement agent for the deal.
ChinaNet Online Holdings, which is a parent firm of ChinaNet Online Media Group Ltd., is an integrated web advertising, data-analysis and precision marketing and management services platform. It offers prescriptive assessment for its customers to enhance business outcomes and to advance more efficient firms.
The firm uses an optimization framework, offered by its broad data-analysis infrastructure, to blend mathematical, computational and data sciences into a product management platform. ChinaNet uniquely prescribes and optimizes its clients’ decision making procedures depending on its proprietary ecosystem. Earlier in this month, ChinaNet Online Holdings reported that Mr. Zhongyi Liu has joined company as Chief Strategy Officer to head the firm’s blockchain strategy plan and associated business development.
In the last trading session, the stock price of Chinanet Online Holdings declined more than 3% to close the day at $3.74. The decline came at a share volume of 860,493 compared to average share volume of 2.07 million. This is a marginal decline, as compared to the gains that the company’s stock has posted so far in this year. Chinanet Online stock has jumped more than 243% so far in this month. Post the recent decline, the market cap of firm was noted at $62.8 million.