CHARLOTTE, N.C. - Cheetah Net Supply Chain Service Inc. (NASDAQ: CTNT), a supplier of parallel-import vehicles and a logistics service provider, has priced its follow-on public offering of 13,210,000 shares of Class A common stock at $0.62 each. The company expects to raise $8,190,200 in gross proceeds before accounting for placement agent fees and other related expenses.
The offering, announced today, is set to close tomorrow, subject to customary closing conditions. AC Sunshine Securities LLC is serving as the sole placement agent for the transaction.
Cheetah Net aims to allocate the net proceeds from this offering to enhance working capital and further develop its warehousing and logistics services. These efforts are part of the company's strategic initiatives to expand its business operations.
The company primarily engages in the purchase and resale of luxury automobiles from the U.S. market to customers in the U.S. and the People's Republic of China (PRC). The company's profits largely derive from the margins between the buying and selling prices of these vehicles.
The information presented here is based on a press release statement from Cheetah Net Supply Chain Service Inc.
InvestingPro Insights
In the wake of Cheetah Net Supply Chain Service Inc.'s recent public offering announcement, InvestingPro data and insights provide a deeper understanding of the company's financial health and market position. According to real-time metrics from InvestingPro, Cheetah Net has a market capitalization of $22.83 million USD, reflecting the company's current valuation in the eyes of investors. Notably, the firm has experienced a significant revenue decline over the last twelve months as of Q1 2024, with a decrease of 43.65%. This contraction aligns with analysts' expectations of a sales decline in the current year, as highlighted by one of the InvestingPro Tips.
Investors should also be aware of the company's stock performance, which has seen a considerable drop of 19.05% over the last month and an even steeper year-to-date price total return of -82.75%. These figures may be of interest to potential investors considering the timing of their investment relative to the company's stock price movements.
Despite these challenges, Cheetah Net's liquid assets exceed its short-term obligations, suggesting a degree of financial resilience. This is an important factor for investors to consider, especially when evaluating the company's ability to fund its strategic initiatives and enhance working capital, as stated in their plans for the net proceeds from the offering.
For a more comprehensive analysis and additional insights, there are 13 more InvestingPro Tips available for Cheetah Net on InvestingPro. These tips can provide investors with a richer perspective on the company's financial standing and market potential. To access these insights and make informed investment decisions, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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