SunCar Technology Group Inc. Announces $21M Follow-On Offering
Portfolio Pulse from Benzinga Newsdesk
SunCar Technology Group Inc. (NASDAQ:SDA) has announced a follow-on offering of $21 million of Class A Ordinary Shares at a price of $8.18 per share. The company will issue a total of 2,567,238 Ordinary Shares to institutional investors. Additionally, the company will issue common warrants for the purchase of up to 3,850,856 Ordinary Shares at an exercise price of $9.00 per share. The net proceeds from this offering will be used for working capital and general corporate purposes. The offering is expected to close on October 30, 2023.
October 26, 2023 | 1:28 pm
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SunCar Technology Group Inc. is issuing a follow-on offering of $21 million of Class A Ordinary Shares. This could dilute existing shareholders' equity, but will provide the company with additional capital for operations.
The follow-on offering could dilute the equity of existing shareholders, which may negatively impact the stock price in the short term. However, the additional capital could be beneficial for the company's operations in the long term, which could potentially offset the initial negative impact.
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