Puyi Announces $13M Investment From New Dragon For 4,224,000 Ordinary Shares Of Puyi At A Price Of $3.13/Share Or $4.70/ADS; New Dragon Will Hold ~1.1% Of Puyi's Enlarged Outstanding Ordinary Shares
Portfolio Pulse from Benzinga Newsdesk
Puyi Inc. has announced a $13 million investment from New Dragon Group for 4,224,000 ordinary shares at $3.13 per share or $4.70 per ADS. This transaction will result in New Dragon holding approximately 1.1% of Puyi's enlarged outstanding ordinary shares. The shares include both newly issued shares and existing shares sold by certain shareholders. Puyi's CEO, Mr. Yong Ren, views the investment as a recognition of Puyi's acquisition-driven growth strategy and a sign of confidence in the company's long-term growth.
January 16, 2024 | 1:51 pm
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POSITIVE IMPACT
Puyi Inc. receives a $13M investment from New Dragon for 4.22M shares, indicating confidence in Puyi's growth strategy and potentially increasing investor interest.
The investment from New Dragon is a positive signal to the market, suggesting confidence in Puyi's growth strategy. This could lead to increased investor interest and potentially a positive impact on Puyi's stock price in the short term. The fact that the investment was made at the average closing price over the prior 20 trading days indicates a fair valuation without a premium, which may reassure existing shareholders about the current stock price.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100