ATA Creativity Global Announces Closing of Registered Direct Offering of its ADSs

Rhea-AI Summary

ATA Creativity Global (NASDAQ:AACG) closed a registered direct offering on January 28, 2026, issuing 11,067,547 ADSs at $0.80 per ADS (each ADS = two common shares).

The Company received gross proceeds of approximately $8.85 million, and intends to use net proceeds for general working capital. Prior discussions with Baby BTC Strategic Capital were terminated.

Positive

• Gross proceeds of approximately $8.85 million raised from the offering
• Net proceeds designated for general working capital, supporting near-term operations

Negative

• Issued 11,067,547 ADSs (equivalent to 22,135,094 common shares) causing shareholder dilution
• ADSs sold at $0.80 per ADS, which may reflect discounted financing terms
• Termination of discussions with Baby BTC Strategic Capital removes a potential strategic investor

Key Figures

ADSs offered: 11,067,547 ADSs Price per ADS: US$0.80 per ADS Price per share: US$0.40 per Common Share +2 more

5 metrics

ADSs offered 11,067,547 ADSs Registered direct offering size

Price per ADS US$0.80 per ADS Purchase price in offering

Price per share US$0.40 per Common Share Implied price per underlying share

Par value US$0.01 per share Par value of Common Shares

Gross proceeds US$8.85 million Gross proceeds from offering before expenses

Market Reality Check

Price: $1.15 Vol: Volume 4,687 is below 20-...

low vol

$1.15 Last Close

Volume Volume 4,687 is below 20-day average 22,043 (relative volume 0.21). low

Technical Price 1.145 is trading below 200-day MA at 1.22, reflecting a weaker longer-term trend.

Peers on Argus

AACG slipped about 0.43% while peers were mixed: LGCY up 4.37%, GNS and IH down,...

1 Up

AACG slipped about 0.43% while peers were mixed: LGCY up 4.37%, GNS and IH down, STG slightly up. Only one peer showed notable momentum, pointing to a company-specific reaction.

Previous Offering Reports

1 past event · Latest: Nov 18 (Negative)

Same Type Pattern 1 events

Date	Event	Sentiment	Move	Catalyst
Nov 18	Registered offering	Negative	+2.4%	Announced registered direct ADS offering with targeted gross proceeds for working capital.

Pattern Detected

Limited offering history: the prior registered direct agreement saw a positive 2.44% move despite its dilutive structure.

Recent Company History

Recent news for AACG has focused on financing and corporate milestones. In Nov 2025, the company announced a registered direct offering of 11,067,547 ADSs at $0.80, targeting $8.85M in gross proceeds for general working capital, which coincided with a 2.44% price gain. Today’s article reports the closing of that same transaction and confirmation that a previously disclosed alternative Baby Capital transaction will not proceed.

Historical Comparison

offering

+2.4 %

Average Historical Move

Historical Analysis

AACG has 1 prior offering-related event with an average move of 2.44%. Today’s closing announcement directly follows that earlier financing agreement.

Typical Pattern

This news marks progression from the November 2025 subscription agreement for a registered direct offering to its formal closing and funding.

Market Pulse Summary

This announcement finalizes AACG’s previously agreed registered direct offering of 11,067,547 ADSs a...

Analysis

This announcement finalizes AACG’s previously agreed registered direct offering of 11,067,547 ADSs at US$0.80, raising roughly US$8.85M in gross proceeds for general working capital. It also confirms termination of the alternative Baby Capital term sheet. Investors may track how the expanded equity base interacts with prior trading around the November 2025 financing news and any subsequent capital plans or operational updates.

Key Terms

american depositary shares, registered direct offering

2 terms

american depositary shares financial

"registered direct offering for the sale and purchase of 11,067,547 American Depositary Shares"

American depositary shares (ADSs) are a way for investors in the United States to buy shares of foreign companies without dealing with international markets directly. They represent ownership in a foreign company's stock and are traded on U.S. stock exchanges, making it easier for American investors to buy, sell, and own parts of companies from around the world.

registered direct offering financial

"announced the closing of its previously announced registered direct offering for the sale"

A registered direct offering is a way for a company to sell new shares of its stock directly to select investors with regulatory approval. This method allows the company to raise funds quickly and efficiently without needing a public auction, similar to offering exclusive access to a limited number of buyers. For investors, it often provides an opportunity to purchase shares at a favorable price, while giving the company immediate access to capital.

AI-generated analysis. Not financial advice.

BEIJING, CN / ACCESS Newswire / January 28, 2026 / ATA Creativity Global ("ACG" or the "Company")(Nasdaq:AACG), an international educational services company focused on providing quality learning experiences that cultivate and enhance students' creativity, today announced the closing of its previously announced registered direct offering for the sale and purchase of 11,067,547 American Depositary Shares ("ADSs"), each representing two common shares of the Company, with a par value of US$0.01 per share (the "Common Shares"), at a purchase price of US$0.80 per ADS (equivalent to US$0.40 per Common Share), pursuant to the subscription agreement dated November 17, 2025 entered into by and among the Company and three investors.

The Company received gross proceeds of approximately US$8.85 million from the issuance and sale of the ADSs before deducting the offering expenses payable by the Company. The net proceeds from the registered direct offering will be used for general working capital needs.

Separately, the Company announced in August 2025 that it entered into a non-binding term sheet (the "Term Sheet") with Baby BTC Strategic Capital Limited ("Baby Capital"), pursuant to which Baby Capital intended to subscribe for new shares of the Company. The Company and Baby Capital have since terminated the discussions regarding the potential transaction contemplated under the Term Sheet.

About ATA Creativity Global

ATA Creativity Global is an international educational services company focused on providing quality learning experiences that cultivate and enhance students' creativity. ATA Creativity Global offers a wide range of education services consisting primarily of portfolio training, research-based learning services, overseas study counselling and other educational services through its training center network. For more information, please visit ACG's website at www.atai.net.cn.

Cautionary Note Regarding Forward-looking Statements

This report contains statements that may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terms such as "will," "should," "could," "expect," "anticipate," "aim," "future," "intend," "plan," "believe," "estimate," "forecast," "outlook," "likely to" and similar statements. ACG may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about ACG's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, further information regarding which is included in the Company's filings with the SEC. These forward-looking statements are subject to a number of risks and uncertainties, which could cause the actual results to differ materially from those indicated in these forward-looking statements. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this report. All information provided in this report is as of the date of this report, and ACG undertakes no duty to update such information to reflect events or circumstances that arise after the date hereof, except as required under applicable law.

For more information on our company, please contact the following individuals:

At the Company	Investor Relations
ATA Creativity Global	The Equity Group Inc.
Ruobai Sima, Chief Financial Officer	Lena Cati, Senior Vice President
+86 10 6518 1133 x5518	212-836-9611
simaruobai@acgedu.cn	lcati@theequitygroup.com
	Alice Zhang, Associate
	212-836-9610
	azhang@theequitygroup.com

SOURCE: ATA Creativity Global

View the original press release on ACCESS Newswire

FAQ

How many ADSs did ATA Creativity Global (AACG) sell in the January 28, 2026 offering?

The company sold 11,067,547 ADSs in the registered direct offering. According to the company, each ADS represents two common shares, so the issuance equates to 22,135,094 common shares in total.

How much gross cash did AACG raise from the registered direct offering on January 28, 2026?

AACG raised approximately $8.85 million in gross proceeds from the offering. According to the company, this amount is before deducting offering expenses payable by the company.

What price per ADS did ATA Creativity Global (AACG) receive in the January 28, 2026 offering?

ADSs were sold at a purchase price of $0.80 per ADS. According to the company, that price is equivalent to $0.40 per common share since each ADS represents two common shares.

What will AACG use the net proceeds from the January 2026 registered direct offering for?

The company will use net proceeds for general working capital needs. According to the company, the funds are intended to support near-term operational and liquidity requirements.

Did ATA Creativity Global complete a separate transaction with Baby BTC Strategic Capital (Baby Capital)?

No, AACG terminated discussions with Baby BTC Strategic Capital and did not complete that transaction. According to the company, the previously announced non-binding term sheet was ended and the contemplated subscription will not proceed.

Will the January 28, 2026 offering materially dilute AACG shareholders?

The offering issues 11,067,547 ADSs, equivalent to 22,135,094 common shares, which will dilute existing shareholders. According to the company, these shares were issued pursuant to the registered direct offering dated November 17, 2025.