EZGO Technologies Ltd. Announces Closing of Upsized $12 Million Registered Direct Offering

Rhea-AI Summary

EZGO Technologies Ltd. announced the closing of a registered direct offering, raising approximately $12 million by selling 2,564,102 units. Each unit comprises one ordinary share and a warrant to purchase 0.7 ordinary shares at an exercise price of $4.68. After expenses, the net proceeds are about $10.9 million, intended for working capital and corporate purposes. Following the offering, EZGO has around 13,402,602 ordinary shares outstanding. The offering was executed under SEC registration statements as of May 2021.

Positive

• Raised approximately $12 million in a direct offering.
• Net proceeds of about $10.9 million for working capital.

Negative

• Dilution risk for existing shareholders due to the new issuance of shares.

CHANGZHOU, China, June 2, 2021 /PRNewswire/ -- EZGO Technologies Ltd. (Nasdaq: EZGO) ("EZGO" or the "Company"), a leading short-distance transportation solutions provider in China, today announced that it has closed a registered direct offering of an aggregate of 2,564,102 units of its securities (each, a "Unit"), with each Unit consisting of (i) one ordinary share of the Company, par value $0.001 per share, and (ii) one warrant to purchase 0.7 ordinary share for aggregate gross proceeds of approximately $12 million.  The warrants are exercisable immediately, have an exercise price of $4.68 per share and expire two years from the date of issuance.

After deducting the placement agent's commissions and other offering expenses payable by EZGO, the net proceeds to the Company are approximately $10.9 million. EZGO has approximately 13,402,602 ordinary shares outstanding after the offering. The Company intends to use the net proceeds of the offering for working capital and general corporate purposes.

FT Global Capital, Inc. is acting as the exclusive placement agent in connection with the offering. Ellenoff Grossman & Schole LLP acted as counsel to the Company and Sheppard Mullin LLP acted as counsel to the Placement Agent in connection with the offering.

The offering was made pursuant to a registration statement on Form F-1 (SEC File No. 333-256311), previously filed with the Securities and Exchange Commission ("SEC") on May 20, 2021, subsequently amended and declared effective on May 26, 2021,   and an additional registration statement on Form F-1 (File No. 333-256525) filed on May 27, 2021 pursuant to Rule 462(b) of the Securities Act of 1933, as amended, which became effective automatically upon filing. A prospectus describing the terms of the offering have been filed with the SEC and is available on the SEC's website located at www.sec.gov.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor may there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About EZGO Technologies Ltd.

Leveraging an Internet of Things (IoT) product and service platform and two E-bicycle brands, "Cenbird" and "Dilang," EZGO has established a business model centered on the manufacturing and sale of E-bicycles and E-bicycle rentals, complemented by the E-bicycle charging pile business. For additional information, please visit EZGO's website at www.ezgotech.com.cn.

Investors can visit the "Investor Relations" section of EZGO's website at:
http://www.ezgotech.com.cn/Investor/.

Safe Harbor Statement

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may, "will, "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the short-distance transportation solutions market in China and the other international markets the Company plans to serve; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and the international markets the Company plans to serve and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward–looking statements to reflect events or circumstances that arise after the date hereof.

 

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SOURCE EZGO Technologies Ltd.

FAQ

What was the total amount raised in EZGO's recent offering?

EZGO Technologies raised approximately $12 million in its recent registered direct offering.

What are the intended uses of the proceeds from the EZGO offering?

The proceeds will be used for working capital and general corporate purposes.

What is the exercise price of the warrants issued by EZGO?

The exercise price of the warrants is $4.68 per share.

How many ordinary shares are outstanding after the EZGO offering?

After the offering, EZGO has approximately 13,402,602 ordinary shares outstanding.