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Lichen China Limited's $5.9M Fundraising Report: Insights & Offerings

$LICN
Form 6-K
Filed on: 2025-01-03
Source
Lichen China Limited's $5.9M Fundraising Report: Insights & Offerings

Here are the key insights and information extracted from the financial report of Lichen China Limited (Form 6-K):

Overview:

  • Company Name: Lichen China Limited
  • Report Date: January 3, 2025
  • Commission File Number: 001-41493
  • Location: Xiamen City, Fujian Province, China

Recent Offerings:

  1. December 26, 2024 Registered Direct Offering:
  • Shares Issued: 10,433,333 Class A ordinary shares.
  • Price per Share: $0.14.
  • Pre-Funded Warrants Issued: Up to 9,566,667 warrants at $0.139 each.
  • Gross Proceeds: Approximately $2.8 million before fees.
  • Use of Proceeds: Working capital and general corporate purposes.
  • Closing Date: December 27, 2024.
  • Exercise Price of Warrants: $0.001 per share.
  • Warrants Status: Fully exercised, resulting in the issuance of 9,566,667 additional shares.
  1. December 29, 2024 Registered Direct Offering:
  • Shares Issued: 13,200,000 Class A ordinary shares.
  • Price per Share: $0.125.
  • Pre-Funded Warrants Issued: Up to 11,800,000 warrants at $0.124 each.
  • Gross Proceeds: Approximately $3.1 million before fees.
  • Use of Proceeds: Working capital and general corporate purposes.
  • Closing Date: December 31, 2024.
  • Warrants Status: Fully exercised, resulting in the issuance of 11,800,000 additional shares.

Agreements and Conditions:

  • Both offerings included customary terms such as representations, warranties, and indemnification provisions.
  • Lock-Up Period: Directors and executive officers agreed not to sell or transfer any securities for 90 days post-offering.
  • Placement Agent: Univest Securities, LLC acted as the exclusive placement agent for both offerings, receiving a fee of 7% of gross proceeds plus reimbursement for legal expenses up to $50,000.

Regulatory Compliance:

  • Both offerings were conducted under a registration statement on Form F-3 previously filed and effective as of March 1, 2024.
  • The report includes legal opinions related to the issuance and sale of the offered securities.

Forward-Looking Statements:

  • The report contains forward-looking statements regarding the company's future performance, which may be subject to risks and uncertainties.

Conclusion:

Lichen China Limited successfully completed two significant registered direct offerings in late December 2024, raising a total of approximately $5.9 million in gross proceeds for operational uses. The company has demonstrated a proactive approach to securing funding while maintaining compliance with regulatory requirements.