CCSC Technology International Holdings Limited Announces Pricing of $7.06 Million Public Offering

Rhea-AI Summary

CCSC Technology (NASDAQ:CCTG) has announced the pricing of a public offering expected to raise $7.06 million in gross proceeds. The offering consists of 11,766,627 Class A ordinary shares and 23,533,254 warrants, with each share being sold together with two warrants at a combined price of $0.60.

The warrants have an exercise price of $0.72 per share (120% of offering price) and expire in five years. The company plans to use proceeds for strengthening branding and marketing in Europe and ASEAN regions, strategic acquisitions, and general corporate purposes. The offering is expected to close around October 2, 2025, with Revere Securities LLC acting as placement agent.

Positive

• Raising $7.06 million in gross proceeds to strengthen operations
• Strategic expansion planned in Europe and ASEAN markets
• Potential for additional capital through warrant exercises at $0.72 per share

Negative

• Significant shareholder dilution through issuance of 11.77M new shares
• Additional potential dilution from 23.53M warrants if exercised
• Offering price indicates relatively low valuation for shares

Insights

Capital Markets Analyst

CCTG raises $7.06M through a dilutive offering at a significant discount, likely pressuring share price despite growth plans.

CCSC Technology has priced a $7.06 million best-efforts public offering consisting of 11,766,627 Class A ordinary shares bundled with 23,533,254 warrants. Each share-warrant bundle is priced at just $0.60, with warrants exercisable at $0.72 per share over a five-year period.

This financing structure reveals several critical insights. First, the offering is significantly dilutive to existing shareholders. Second, the $0.60 pricing likely represents a substantial discount to previous trading levels, indicating weak demand or challenging market conditions. The 5-year warrant coverage at just a 20% premium to the offering price further suggests the company struggled to attract investors without substantial sweeteners.

The $7.06 million raise before fees will leave considerably less for actual business operations after deducting placement agent fees and offering expenses. The company plans to use these proceeds primarily for branding/marketing in Europe and Southeast Asia, along with strategic acquisitions - suggesting a focus on geographic expansion rather than operational improvements.

This capital raise through Revere Securities (a boutique investment bank) rather than a major underwriter also indicates limited institutional interest. The "best efforts" nature of the offering provides no guarantee of full subscription, introducing execution risk. Overall, this financing appears necessary but comes at a significant cost to shareholders through dilution and likely share price pressure.

HONG KONG, Oct. 01, 2025 (GLOBE NEWSWIRE) -- CCSC Technology International Holdings Limited (the “Company”) (Nasdaq: CCTG), a Hong Kong-based company that engages in the sale, design and manufacturing of interconnect products, including connectors, cables and wire harnesses, today announced the pricing of a best-efforts public offering (the “Offering”) of (i) 11,766,627 Class A ordinary shares (the “Class A Ordinary Shares”) and (ii) 23,533,254 warrants to purchase 23,533,254 Class A Ordinary Shares (the “Warrants”). Each Class A Ordinary Share is being sold together with two Warrants. The combined public offering price for each Class A Ordinary Share and accompanying Warrants is $0.60. Each Warrant has an exercise price per share equal to 120% of the public offering price ($0.72 per share), and expires on the fifth anniversary of the issuance date, subject to certain adjustments.

The Offering is expected to close on or about October 2, 2025, subject to the satisfaction of customary closing conditions. Gross proceeds to the Company, before deducting placement agent’s fees and other offering expenses, are expected to be approximately $7.06 million. The Company intends to use the net proceeds of this Offering to strengthen branding and marketing to escalate its position in the industry in Europe and the Association of Southeast Asian Nations, for strategic acquisitions and collaborations, and for other general corporate purposes.

Revere Securities LLC is acting as the placement agent in connection with the Offering. Hunter Taubman Fischer & Li LLC is acting as U.S. counsel to the Company, and VCL Law LLP is acting as U.S. counsel to the placement agent in connection with the Offering.

A registration statement on Form F-1, as amended (File No. 333-289769), relating to the Offering was filed with the U.S. Securities and Exchange Commission (the “SEC”) and was declared effective by the SEC on September 30, 2025. The Offering is being made only by means of a prospectus, forming part of the effective registration statement. A copy of the final prospectus, when available, relating to the Offering may be obtained via the SEC’s website at www.sec.gov. Copies of the prospectus, when available, may be obtained from Revere Securities LLC, by standard mail to 560 Lexington Avenue, 16th Floor, New York, NY 10022, by telephone at +1 (212) 688-2350, or by email at contact@reveresecurities.com.

Before you invest, you should read the prospectus and other documents the Company has filed or will file with the SEC for more information about the Company and the Offering. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About CCSC Technology International Holdings Limited

CCSC Technology International Holdings Limited, is a Hong Kong-based company that engages in the sale, design and manufacturing of interconnect products. The Company specializes in customized interconnect products, including connectors, cables and wire harnesses that are used for a range of applications in a diversified set of industries, including industrial, automotive, robotics, medical equipment, computer, network and telecommunication, and consumer products. The Company produces interconnect products under both OEM (“Original Equipment Manufacturer”) and ODM (“Original Design Manufacturer”) models for manufacturing companies that produce end products, as well as electronic manufacturing services companies that procure and assemble products on behalf of such manufacturing companies. The Company has a diversified global customer base located in more than 25 countries throughout Asia, Europe and the Americas. For more information, please visit the Company’s website: http://ir.ccsc-interconnect.com.

Forward-Looking Statements

Certain statements in this press release are forward-looking statements, including, but not limited to, statements relating to the expectation that the Offering will be successfully completed. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that may affect its financial condition, results of operations, business strategy and financial needs, including the expectation that the Offering will be successfully completed. Investors can find many (but not all) of these statements by the use of words such as “may,” “will,” “could,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “propose,” “potential,” “continue,” or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statements and other filings with the SEC.

For more information, please contact:

CCSC Technology International Holdings Limited
Investor Relations Department
Email: ir@ccsc-interconnect.com

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

FAQ

How much is CCTG raising in their October 2025 public offering?

CCSC Technology (CCTG) is raising $7.06 million in gross proceeds through a public offering of Class A ordinary shares and warrants.

What is the structure of CCSC Technology's 2025 public offering?

The offering includes 11,766,627 Class A ordinary shares sold together with 23,533,254 warrants at $0.60 per unit, with each unit consisting of one share and two warrants.

What is the exercise price and expiration of CCTG's 2025 warrants?

The warrants have an exercise price of $0.72 per share (120% of the offering price) and expire five years from their issuance date.

How will CCSC Technology use the proceeds from their 2025 offering?

CCTG will use the proceeds for branding and marketing in Europe and ASEAN regions, strategic acquisitions and collaborations, and general corporate purposes.

When will CCTG's 2025 public offering close?

The offering is expected to close on or about October 2, 2025, subject to customary closing conditions.