CHARLOTTE, N.C. - Cheetah Net Supply Chain Service Inc. (NASDAQ:CTNT), known for its logistics and warehousing services, disclosed Thursday its agreement with certain investors for a follow-on public offering. The company is set to issue 6,479,663 shares of Class A common stock at a price of $0.23 per share, aiming to raise approximately $1.49 million before fees and expenses are deducted.
The net proceeds from the offering, which is anticipated to close on or about July 26, 2024, will be allocated to Cheetah Net's working capital and general corporate needs. FT Global Capital, Inc. has been appointed as the exclusive placement agent for the transaction.
This offering comes after the effective declaration of the company's registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) on July 15, 2024. Prospective investors are advised to read the final prospectus, which will be available on the SEC's website, as part of their due diligence.
Previously recognized for its role in the parallel-import vehicle market, Cheetah Net has since expanded its focus to include the facilitation of non-vehicle trade. The company's services encompass storage, logistics, freight forwarding, and inventory financing to its clientele.
This news release does not constitute an offer to sell or a solicitation of an offer to buy securities in any jurisdiction where such offer or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction.
The information discussed in this article is based on a press release statement from Cheetah Net Supply Chain Service Inc.
In other recent news, Cheetah Net Supply Chain Service Inc. has priced its follow-on public offering of 13,210,000 shares of Class A common stock at $0.62 each. The logistics service provider anticipates gross proceeds of $8,190,200 before deducting placement agent fees and other related costs. The offering is expected to close soon, with AC Sunshine Securities LLC acting as the sole placement agent.
The company intends to use the net proceeds from this offering to bolster its working capital and further enhance its warehousing and logistics services. This move aligns with Cheetah Net's strategic initiatives to broaden its business operations. Despite this, the company's primary revenue source remains the purchase and resale of luxury automobiles from the U.S. market. These recent developments are part of Cheetah Net's ongoing business strategy.
InvestingPro Insights
In light of Cheetah Net Supply Chain Service Inc.'s (NASDAQ:CTNT) recent announcement of a follow-on public offering, investors may find the following insights from InvestingPro valuable when considering the company's financial health and market position.
Despite the company's efforts to raise capital, InvestingPro data reveals a challenging financial environment for Cheetah Net. With a market capitalization of just $15.62 million, the company's revenue has seen a sharp decline of 43.65% over the last twelve months as of Q1 2024. This is further accentuated by a quarterly revenue growth plummeting by 85.24% in Q1 2024, indicating significant headwinds in the company's operations.
Moreover, the stock's performance has been marked by high volatility, as noted by an InvestingPro Tip, which could be a concern for risk-averse investors. Additionally, the company's stock is currently trading near its 52-week low, with the price at a mere 3.15% of the 52-week high. This could either suggest a potential undervaluation or reflect underlying business challenges.
On a positive note, according to another InvestingPro Tip, Cheetah Net's liquid assets exceed its short-term obligations, which could provide some financial flexibility in the near term. For investors seeking a comprehensive analysis of Cheetah Net's financials and market potential, InvestingPro offers additional tips that could prove invaluable in making informed decisions. Subscribers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription for deeper insights.
As the company navigates through its financial restructuring, it is worth noting that there are 15 more InvestingPro Tips available for Cheetah Net on https://www.investing.com/pro/CTNT, which could offer further guidance on the stock's prospects.
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