SOS Ltd shares tumbled 37% in morning trading on ~$20M ADSs offering.
SOS Limited (NYSE: SOS) (the "Company" or "SOS"), an emerging blockchain-based andbig data-driven marketing solution provider,announced today that it has entered into a securities purchase agreement with certain accredited investors to purchase approximately $20 million worth of its American Depositary Shares (“ADS”) in a registered direct offering.
Under the terms of the securities purchase agreement, the Company has agreed to sell 35,750,000 ADSs at a purchase price of $0.56 per ADS. Each ADS represents ten (10) Class A Ordinary Shares of the Company. The ADSs are traded on the New York Stock Exchange under the symbol “SOS”. In addition, effective on the closing date of this offering, the Company has agreed to voluntarily reduce the exercise price of the ADS purchase warrants issued on February 17, 2021, February 22, 2021, March 1, 2021 and April 1, 2021 to $0.56 per share.
The gross proceeds to the Company from the registered direct offering are estimated to be $20.02 million before deducting the placement agent’s fees and other estimated offering expenses. The registered direct offering is expected to close on or about April 4, 2022, subject to the satisfaction of customary closing conditions.
The Company intends to use the proceeds from the offering to develop its business in North America as well as for working capital and general corporate use.