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CN Energy Group, Inc. Warrant Inducement Agreement: Key Updates & Details

$CNEY
Form 6-K
Filed on: 2025-01-08
Source
CN Energy Group, Inc. Warrant Inducement Agreement: Key Updates & Details

Here's a concise summary of the key information extracted from the SEC Form 6-K report for CN Energy Group, Inc.:

Company Overview

  • Company Name: CN Energy Group, Inc.
  • Principal Executive Office Address: Building 2-B, Room 206, No. 268 Shiniu Road, Liandu District, Lishui City, Zhejiang Province, The People's Republic of China.
  • Commission File Number: 001-39978

Warrant Inducement Agreement

  • Date of Agreement: December 5, 2024
  • Existing Warrants: The company entered into Warrant Inducement Agreements with holders of existing ordinary share purchase warrants issued in January 2023, covering up to 6,576,278 class A ordinary shares.
  • Exercise Price Reduction: The exercise price of the existing warrants was reduced from $1.4529 per share to $0.32 per share.
  • New Warrants Issuance: Holders who exercise their existing warrants at the reduced price will receive new unregistered ordinary share purchase warrants (New Warrants).
  • Exercise Deadline: Originally set for January 5, 2025, extended to February 7, 2025.
  • Registration Statement: The company agreed to file a registration statement for the resale of ordinary shares issued upon exercise of the New Warrants by February 21, 2025.

Placement Agent and Fees

  • Placement Agent: Aegis Capital Corp.
  • Cash Fee: The company will pay a cash fee of 6.0% of the aggregate gross proceeds from the exercise of existing warrants.
  • Reimbursement: The company will reimburse the Placement Agent $45,000 for fees and expenses related to the transaction.

New Warrants Details

  • Exercise Amount: New Warrants will allow the purchase of a number of ordinary shares equal to 100% of the shares issued upon the cash exercise of the existing warrants.
  • New Exercise Price: $0.32 per share, exercisable immediately upon issuance.
  • Expiration Date: New Warrants expire on February 7, 2028.

Filing Information

  • This report is incorporated by reference into the registration statement on Form F-3 (File Number 333-264579).

Signatory Information

  • Date Signed: January 8, 2025
  • Signed by: Xinyang Wang, Chairperson of the Board.

This summary encapsulates the critical elements of the warrant inducement agreement and the implications for the company's capital structure, as well as the strategic actions taken to incentivize warrant holders.