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Tantech Holdings Ltd: January 2025 Inducement Agreements & Financial Insights

$TANH
Form 6-K
Filed on: 2025-01-08
Source
Tantech Holdings Ltd: January 2025 Inducement Agreements & Financial Insights

Here are the key insights extracted from the financial report (Form 6-K) filed by Tantech Holdings Ltd:

  1. Company Overview:
  • Name: Tantech Holdings Ltd
  • Address: No. 10 Cen Shan Road, Shuige Industrial Zone, Lishui City, Zhejiang Province, People's Republic of China 323000.
  1. Report Context:
  • This report is filed as a foreign private issuer pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934 for the month of January 2025.
  1. Inducement Agreements:
  • On January 7, 2025, Tantech entered into inducement agreements with certain holders of Series A warrants, which are exercisable for a total of 16,046,466 common shares.
  • The existing warrants were originally issued under a securities purchase agreement dated April 22, 2024, with a current exercise price of $0.1612.
  1. Terms of Inducement:
  • In exchange for exercising the existing warrants, holders will receive new Series A common share purchase warrants ("New Warrants").
  • The New Warrants will allow holders to purchase up to 150% of the shares issued from exercising the existing warrants.
  • If all existing warrants are exercised, the company expects to receive gross proceeds of approximately $2.6 million.
  1. New Warrants Details:
  • The New Warrants have an immediate exercise feature with an exercise price of $0.20.
  • They expire 5.5 years from issuance.
  • The exercise price and number of shares issuable under the New Warrants are subject to adjustments based on specific events (e.g., stock dividends, splits).
  1. Regulatory Compliance:
  • The New Warrants have not been registered under the Securities Act of 1933 and may not be sold in the U.S. without registration or an applicable exemption.
  • The offering of the New Warrants is exempt from registration under Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D.
  1. Future Actions:
  • Tantech has agreed to file a registration statement with the SEC to register the resale of the new warrant shares underlying the New Warrants.
  1. Exhibits:
  • The report includes forms of the Inducement Agreement and New Warrant as exhibits (Exhibit 4.1 and 10.1).
  1. Signature:
  • The report is signed by Wangfeng Yan, Chief Executive Officer, on January 8, 2025.

This summary encapsulates the major points regarding the inducement agreements, financial implications, and regulatory compliance associated with Tantech Holdings Ltd's recent activities.