NEW YORK - Singularity Future Technology Ltd. (NASDAQ:SGLY), a global logistics solutions provider, has entered into agreements with several institutional investors for a registered direct offering of 700,000 shares of common stock, priced at $1.63 each. The offering comes as the company's stock has experienced significant volatility, with shares down over 45% in the past six months, according to InvestingPro data, which also reveals 15 additional key insights about the company's performance. The transaction is expected to yield approximately $1.1 million in gross proceeds before deductions for fees and other expenses. The closing of the offering is anticipated on or about January 27, 2025, contingent upon customary closing conditions. With a current market capitalization of just $7.12 million and a concerning cash burn rate, this capital raise appears crucial for the company's operations.
Maxim (NASDAQ:MXIM) Group LLC is serving as the exclusive placement agent for the offering. The shares are being offered under a shelf registration statement (File No. 333-282006) that was declared effective by the U.S. Securities and Exchange Commission (SEC) on October 24, 2024. The offering is subject to the availability of a prospectus supplement that will form part of the registration statement.
The proceeds from the sale are expected to be used for general corporate purposes, as outlined by the company. However, Singularity has not specified the exact allocation of the funds. InvestingPro analysis indicates the company maintains a current ratio of 2.77, suggesting adequate liquidity to meet short-term obligations, though its financial health score remains in the "FAIR" category. Investors interested in the offering can obtain copies of the prospectus supplement and accompanying prospectus, once available, from the SEC's website or directly from Maxim Group LLC.
Singularity Future Technology Ltd., established in 2001 in the United States, specializes in freight logistics services, catering primarily to steel companies and e-commerce businesses. The company offers a comprehensive suite of services, including shipping, warehousing, resource management, equipment provision, and logistical support.
This press release contains forward-looking statements regarding the company's expectations, beliefs, and financial strategy. While these statements reflect the company's current projections, they are subject to risks, uncertainties, and potential changes in market conditions. Based on InvestingPro's Fair Value analysis, the stock appears to be trading near its fair value, with analysts forecasting revenue growth of 14.61% for FY2025. The company has stated it will not update these forward-looking statements in the light of new information or future events.
The details provided are based on a press release statement from Singularity Future Technology Ltd. and are intended to inform investors about the recent developments in the company's financial activities.
In other recent news, Singularity Future Technology Ltd. has undergone significant changes in its executive team, as reported in a recent filing with the Securities and Exchange Commission. Ziyun Liu has stepped down from his roles as CEO, board member, and chairman, citing personal reasons for his departure. In response to this, the company's Nominating and Corporate Governance Committee and the board have appointed Jia Yang as the new CEO and chairwoman of the board. Yang, previously a vice president and a board director, will now earn an annual salary of $66,000 in her elevated position.
Additionally, Jinhao Pang has been appointed as the manager of the Technology Department and an executive director of the board. With a strong background in computer science, Pang's expertise will be a valuable asset to Singularity Future Technology. His annual compensation for these dual roles will be $60,000. The company assures that there are no familial or prior financial ties between Pang and any other officers or directors of the company. These recent developments highlight a significant shift in Singularity Future Technology's leadership structure.
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