Shares of Autozi Internet Technology (Global) Ltd., an auto parts e-commerce platform, jumped 77% in pre-market trading. AZIsaid late Wednesday that it has struck a deal to issue an advance promissory note to an institutional investor.
The deal will result in gross proceeds of up to $5.25 million that will be used to support its growth plans and expand operational capacity, the firm said. The notes are convertible into its shares.
Under the terms of the agreement, the investor also holds the option to require the company to issue an additional $2.5 million in prepaid promissory notes within 21 months of the deal's closing. Market participants have interpreted the financing announcement as a positive signal that will help alleviate the company's liquidity pressures while supporting its business transformation and strategic expansion, directly boosting investor sentiment and the stock price.
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