Lianhe Sowell Prices $11M Follow-On at $1.44, Deep Discount to Market
LHSW has more than doubled off its 52-week low of $1.12 on light trading volume (0.2× avg).
Summary
Lianhe Sowell priced a best-efforts follow-on offering of 7.64 million units at $1.44 each, raising $11 million before fees. Each unit includes one share and three warrants exercisable at $1.66 for six months. The pricing is a steep discount to the $2.81 market price, reflecting weak demand and likely pressuring the stock. The offering follows the F-1/A filed August 27 that outlined the unit structure, but this is the first disclosure of final pricing and warrant terms. Proceeds are earmarked for R&D and working capital. The deal is expected to close September 3.
At the time of this announcement, LHSW was trading at $2.81 on NASDAQ in the Technology sector, with a market capitalization of approximately $9.9M. The 52-week trading range was $1.12 to $47.52. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.