CHIJET MOTOR COMPANY, INC. ANNOUNCES PRICING OF $8.0 MILLION PUBLIC OFFERING

Rhea-AI Summary

Chijet Motor Company (NASDAQ: CJET), a manufacturer of traditional and new energy vehicles (NEV), has announced the pricing of its public offering at $0.59 per share. The offering consists of 13,560,000 Class A ordinary shares and warrants to purchase an equal number of shares, totaling approximately $8.0 million.

The warrants will have a 5-year expiration period and will be immediately exercisable at $0.59 per share, subject to reset adjustments. Notably, warrant holders can exercise a zero-cash option to exchange each warrant for two Class A ordinary shares. Maxim Group LLC serves as the sole placement agent, and the company plans to use proceeds for business acquisitions, corporate management, talent recruitment, and working capital.

Positive

• Warrants include favorable zero-cash exercise option allowing exchange for two Class A ordinary shares
• Proceeds will support strategic acquisitions and business expansion
• Shelf registration statement already effective with SEC

Negative

• Significant dilution potential from 13.56M shares and additional warrants
• Low offering price of $0.59 per share indicates weak market position
• Warrant reset provisions could lead to additional price pressure

Insights

Financial Analyst

Chijet is raising $8M through a dilutive offering priced significantly below market, signaling potential financial stress despite expansion plans.

Chijet Motor's $8.0 million public offering reveals concerning capital raising dynamics. The company is issuing 13,560,000 Class A ordinary shares with accompanying warrants at $0.59 per unit, a price point that likely represents a significant discount to recent trading. The warrant structure is particularly noteworthy - they're immediately exercisable at the same $0.59 price with reset provisions and a zero-cash exercise option allowing holders to exchange each warrant for two ordinary shares, potentially doubling the dilution impact.

This financing structure suggests Chijet may be struggling to attract investment on favorable terms. The warrant reset provisions and zero-cash exercise option are aggressive sweeteners typically offered when companies face challenges raising capital through traditional means. The immediate exercisability further indicates urgency in the capital raising process.

The stated use of proceeds spans several areas including acquisitions, corporate management, recruitment, and working capital - a broad allocation that lacks specific strategic focus. This generalized approach to capital deployment raises questions about the company's immediate priorities and financial planning.

For context, Chijet operates in the highly competitive automotive sector with dual exposure to both traditional fuel vehicles and the capital-intensive NEV (New Energy Vehicle) market. This $8.0 million raise is relatively modest for automotive manufacturing operations, suggesting this may be a stopgap measure rather than transformative growth capital. The dilutive nature of this offering and its aggressive terms signal potential financial pressure despite the company's stated growth ambitions.

NEW YORK, Sept. 03, 2025 (GLOBE NEWSWIRE) -- Chijet Motor Company, Inc. (NASDAQ: CJET) (the “Company” or “Chijet”), a high-tech enterprise engaged in the development, manufacture, sales, and service of traditional fuel vehicles and new energy vehicles (“NEV”), today announced the pricing of its previously announced public offering of an aggregate of 13,560,000 shares of its Class A ordinary shares, and warrants to purchase up to 13,560,000 Class A ordinary shares, at a combined public offering price of $0.59 per share and accompanying warrants.

Each warrant will expire five (5) years from the issuance, will be immediately exercisable upon issuance at an initial exercise price of $0.59 per share, subject to adjustment on the First Reset Date and the Second Reset Date (as defined in the warrants) and subject to a floor price therein. The warrants may also be exercised on a zero cash exercise option pursuant to which the holder may exchange each warrant for two Class A ordinary shares.

Maxim Group LLC is acting as the sole placement agent for the offering.

Chijet Motor Company, Inc. intends to use the net proceeds of this offering for acquisition of new businesses, corporate management, talent recruitment and general working capital purposes.

A shelf registration statement relating to ordinary shares offered in the public offering described above was filed with the Securities and Exchange Commission (“SEC”) on August 6, 2024, and declared effective by the SEC on August 16, 2024. The offering is being made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the offering has been filed with the SEC and is available on the SEC’s website at www.sec.gov. A final prospectus supplement and accompanying prospectus will be filed with the SEC. When available, copies of the final prospectus supplement and the accompanying prospectus may also be obtained by contacting Maxim Group LLC at 300 Park Avenue, 16^th Floor, New York, New York, telephone (212) 895-3745 or by email at syndicate@maximgrp.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities being offered, nor shall there be any sale of the securities being offered 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 Chijet Motor Company, Inc.

The primary business of Chijet is the development, manufacture, sales, and service of traditional fuel vehicles and NEVs. State-of-the-art manufacturing systems and stable supply chain management enable the Company to provide consumers with products of high performance at reasonable prices. In addition to its large modern vehicle production base in Jilin, China, a factory in Yantai, China will be dedicated to NEV production upon completion of its construction. Chijet has a management team of industry veterans with decades of experience in engineering and design, management, financing, industrial production, and financial management. For additional information about Chijet, please visit www.chijetmotors.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Chijet’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,” “predict,” “potential,” “might” and “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, statements regarding Chijet’s leadership team, Chijet’s continued growth and financial and operational improvements, along with those other risks described under the heading “Risk Factors” in the Company’s annual report on Form 20-F filed with the Securities and Exchange Commission on May 15, 2025, and those that are included in any of Chijet’s future filings with the SEC. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Most of these factors are outside of the control of Chijet and are difficult to predict. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Chijet undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made except as required by law or applicable regulation.

Chijet Contact:
2888 Donshan Street
Gaoxin Automobile Industrial Park
Jilin City, JL. P.R.China
0535-2766202
EMAIL: info@chijetmotors.com

Investor Relations Contact:
2888 Donshan Street
Gaoxin Automobile Industrial Park
Jilin City, JL. P.R.China
0535-2766202
EMAIL: info@chijetmotors.com

FAQ

What is the size and price of Chijet Motor Company's (CJET) public offering in September 2025?

Chijet Motor announced an $8.0 million public offering priced at $0.59 per share, consisting of 13,560,000 Class A ordinary shares and accompanying warrants.

How can investors exercise the warrants in CJET's 2025 public offering?

Investors can exercise the warrants at $0.59 per share for 5 years from issuance, with reset provisions, or use a zero-cash option to exchange each warrant for two Class A ordinary shares.

How will Chijet Motor (CJET) use the proceeds from its September 2025 offering?

Chijet plans to use the proceeds for acquisition of new businesses, corporate management, talent recruitment, and general working capital purposes.

Who is the placement agent for Chijet Motor's (CJET) 2025 public offering?

Maxim Group LLC is acting as the sole placement agent for the offering.

When does CJET's 2025 public offering warrant expire?

The warrants will expire five years from their issuance date and are immediately exercisable upon issuance.