HANGZHOU, China, Feb. 22, 2021 (GLOBE NEWSWIRE) — Ebang International Holdings Inc. (Nasdaq: EBON, the “Company,” “we” or “our”), a blockchain technology company in the global market, today announced the completion of the previously announced offering by and between the Company and several institutional investors (the “Investors”), and the sale of an additional 5.2 million units (“Units,” each, a “Unit”) for a total of 19.2 million Units, all of which were registered pursuant to the Registration Statement on Form F-1 (File No. 333-252804), as amended by Form F-1MEF (File No. 333-252979)(the “Registration Statement”). The Company intends to use the net proceeds from the offering primarily for research, development, production and sales of ASICs and equipment related to cryptocurrencies, expansion of its cryptocurrency mining business as well as establishment and operation of cryptocurrency mining farms, and general corporate purposes, which may include working capital needs and other corporate uses.
The Company also announced that on February 22, 2021, it entered into inducement agreements with the Investors to induce them to exercise certain warrants to purchase up to an aggregate of 13.6 million Class A ordinary shares issued by the Company as part of the prior two offerings during November 2020 to February 2021 at an exercise prices of $5.50 and $5.25, respectively.
The gross proceeds to the Company from the exercise of the warrants are expected to be approximately $72.4 million, prior to deducting solicitation agent fees and estimated offering expenses.
In consideration for the immediate exercise of the warrants for cash, the Investors will receive new, unregistered warrants to purchase the Company’s Class A ordinary shares (the “New Warrants”) in a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”). The New Warrants will be exercisable for an aggregate of up to 13.6 million Class A ordinary shares, at an exercise price of $11.06 per share, which have a term of exercise equal to five years.
The Company has agreed to file a registration statement with the SEC covering the resale of the Class A ordinary shares issuable upon exercise of the New Warrants.
Univest Securities, LLC is acting as the representative of the solicitation agents including Lake Street Capital Markets, LLC in connection with the solicitation of the warrant exercises by the Investors and the issuance of the New Warrants.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
About Ebang International Holdings Inc.
Ebang International Holdings Inc. is a blockchain technology company with strong application-specific integrated circuit (ASIC) chip design capability. With years of industry experience and expertise in ASIC chip design, it has become a leading bitcoin mining machine producer in the global market with steady access to wafer foundry capacity. With its licensed or registered entities in various jurisdictions, the Company seeks to launch a professional, convenient and innovative digital asset financial service platform to expand into the upstream and the downstream of blockchain and cryptocurrency industry value chain. For more information, please visit https://ir.ebang.com.cn/.
Forward-Looking Statements
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulations, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by this cautionary statement and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
For more information, please contact:
Univest Securities, LLC
Edric Guo
Executive Director of Investment Banking
375 Park Avenue #1502
New York, NY 10152
Phone: (212) 343-8888
Email: info@univest.us