Yoshitsu Announces Pricing of $4M Registered Direct Offering Of 5,970,152 ADS At $0.67/ADS; In Concurrent Private Placement To Sell Investors ADS Purchase Warrants At $0.67/ADS
Portfolio Pulse from Benzinga Newsdesk
Yoshitsu Co., Ltd. has announced the pricing of a registered direct offering of 5,970,152 American Depositary Shares (ADS) at $0.67 per ADS, raising a total of $4 million. Additionally, in a concurrent private placement, the company will sell investors warrants to purchase ADS at the same price of $0.67 per ADS.
January 26, 2024 | 2:08 pm
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Yoshitsu Co., Ltd. (TKLF) has priced a direct offering of nearly 6 million ADS at $0.67 each, aiming to raise $4 million. They are also offering warrants to purchase additional ADS at the same price in a private placement.
The announcement of a new stock offering typically dilutes the value of existing shares, which can lead to a short-term decline in the stock price. The offering price being set at $0.67 suggests a potential discount to the current trading price, which can also negatively impact the stock price in the short term. The sale of warrants could further dilute the stock if exercised, adding to the downward pressure.
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