Farmmi, Inc. Announces Closing of $3.0 Million Underwritten Public Offering

Rhea-AI Summary

Farmmi (NASDAQ:FAMI) closed a previously announced underwritten public offering on June 30, 2026, raising approximately $3.0 million in gross proceeds.

The deal included 7,000,000 Class A ordinary shares and pre-funded warrants to purchase 5,000,000 shares at a public offering price of $0.25 per share.

Farmmi plans to use net proceeds, with existing cash, for general corporate purposes and working capital. Aegis Capital is sole book-running manager, with a 45-day option to buy up to 1,800,000 additional shares for over-allotments.

Positive

• Gross proceeds of approximately $3.0 million from underwritten public offering
• Flexibility from mix of 7,000,000 shares and 5,000,000 pre-funded warrants
• Additional capital potential via 45-day over-allotment option for 1,800,000 shares
• Proceeds support general corporate purposes and working capital needs

Negative

• Equity and warrant issuance increases share count and potential dilution for existing holders
• Underwriting fees and offering expenses reduce net proceeds below the $3.0 million gross amount
• Future exercise of 5,000,000 pre-funded warrants may create additional dilution

News Market Reaction – FAMI

-13.09% 2.4x vol

14 alerts

-13.09% Session close to close

-12.7% Trough in 3 hr 38 min

$3.81M Market Cap

2.4x Rel. Volume

In the Jun 30 session, FAMI declined 13.09%, reflecting a significant negative market reaction. Argus tracked a trough of -12.7% from its starting point during tracking. Our momentum scanner triggered 14 alerts that day, indicating notable trading interest and price volatility. Trading volume was elevated at 2.4x the daily average, suggesting increased selling activity.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock dropped -13.1% in the session following this news. A negative reaction despite positive ne...

Analysis

The stock dropped -13.1% in the session following this news. A negative reaction despite positive news fits a pattern where FAMI’s equity offerings have averaged moves near -67.37%. Financing dilution and frequent capital raises could keep pressure on shares even with operational progress.

Key Figures

Gross proceeds: $3.0 million Shares offered: 7,000,000 shares Pre-funded warrants: 5,000,000 warrants +5 more

8 metrics

Gross proceeds $3.0 million Underwritten public offering gross proceeds before fees

Shares offered 7,000,000 shares Class A ordinary shares sold in the offering

Pre-funded warrants 5,000,000 warrants Pre-funded warrants to purchase Class A ordinary shares

Offering price $0.25 per share Public offering price per Class A ordinary share

Pre-funded price $0.24999 per warrant Price per pre-funded warrant in the offering

Exercise price $0.00001 Exercise price per pre-funded warrant

Over-allotment option 1,800,000 shares Additional shares available to underwriter (15.0% of offered)

Option period 45 days Duration of Aegis Capital’s over-allotment option

Previous Offering Reports

2 past events · Latest: Jun 29 (Negative)

Same Type Pattern 2 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 29	Equity offering	Negative	-77.5%	Pricing of $3.0M underwritten offering with shares and pre-funded warrants.
Aug 23	Equity offering	Negative	-57.3%	Pricing of $1.0M registered direct offering with Series A warrants.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Equity offering announcements for FAMI have repeatedly coincided with very large negative single-day price moves.

Key Terms

pre-funded warrants, over-allotments, shelf registration statement, prospectus supplement

4 terms

pre-funded warrants financial

"The offering consists of the sale of 7,000,000 Class A ordinary shares ... and pre-funded warrants to purchase 5,000,000 Ordinary Shares"

Pre-funded warrants are financial instruments that give investors the right to purchase a company's stock at a set price, but with most or all of the purchase price paid upfront. They function like a coupon or gift card for stock, allowing investors to buy shares later at a fixed price, which can be beneficial if they want to avoid future price increases. This makes them important for investors seeking flexibility and certainty in their investment plans.

over-allotments financial

"Solely to cover over-allotments, if any, the Company granted Aegis Capital Corp. a 45-day option"

An over-allotment is a temporary extra batch of shares that the underwriters of a stock offering are allowed to sell beyond the original amount, with the right to buy those shares back later. Think of it as spare tickets sold to meet demand and then reclaimed if needed to keep the market orderly; it helps stabilize the stock price after an offering and can affect short-term supply and potential dilution, which matters to investors tracking price and ownership stakes.

shelf registration statement regulatory

"The offering was made pursuant to an effective shelf registration statement on Form F-3 (No. 333-280348)"

A shelf registration statement is a document a company files with regulators that allows it to sell shares or bonds quickly when it’s a good time to raise money. It’s like having a pre-approved plan ready so the company can act fast without going through lengthy paperwork each time they want to sell, making fundraising more flexible.

prospectus supplement regulatory

"A final prospectus supplement and accompanying prospectus describing the terms of the proposed offering were filed with the SEC"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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LISHUI, China, June 30, 2026 /PRNewswire/ -- Farmmi, Inc. (NASDAQ: FAMI) (the "Company"), an agriculture products supplier in China and a logistics and supply chain services provider in the United States, today announced the closing of its previously announced firm commitment underwritten public offering. Gross proceeds to the Company were approximately $3.0 million, before deducting underwriting fees and other offering expenses payable by the Company. The offering closed on June 30, 2026.

The offering consists of the sale of 7,000,000 Class A ordinary shares (the "Ordinary Shares") and pre-funded warrants to purchase 5,000,000 Ordinary Shares (the "Pre-Funded Warrant"). The public offering price per Ordinary Share was $0.25 (or $0.24999 for each Pre-Funded Warrant, which is equal to the offering price per Ordinary Share sold in the offering minus an exercise price of $0.00001 per Pre-Funded Warrant). The Pre-Funded Warrants are immediately exercisable and may be exercised at any time until exercised in full. For each Pre-Funded Warrant sold in the offering, the number of Ordinary Shares in the offering was decreased on a one-for-one basis.

The transaction closed on June 30, 2026. The Company expects to use the net proceeds from the offering, together with its existing cash, for general corporate purposes and working capital.

Solely to cover over-allotments, if any, the Company granted Aegis Capital Corp. a 45-day option to purchase up to additional 1,800,000 Ordinary Shares (15.0% of the number of Ordinary Shares sold in the offering). The purchase price to be paid per additional Ordinary Share will be equal to the public offering price of one Ordinary Share, less the underwriting discount.

Aegis Capital Corp. is acting as the sole book-running manager for the offering. Kaufman & Canoles, P.C. is acting as U.S. counsel to the Company. Lucosky Brookman LLP is acting as U.S. counsel to Aegis Capital Corp.

The offering was made pursuant to an effective shelf registration statement on Form F-3 (No. 333-280348) previously filed with the U.S. Securities and Exchange Commission (SEC) and declared effective by the SEC on June 27, 2024. A final prospectus supplement and accompanying prospectus describing the terms of the proposed offering were filed with the SEC and is available on the SEC's website located at www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained, when available, by contacting Aegis Capital Corp., Attention: Syndicate Department, 1345 Avenue of the Americas, 27th floor, New York, NY 10105, by email at syndicate@aegiscap.com, or by telephone at +1 (212) 813-1010.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall 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 Farmmi, Inc.

Established in 1998, Farmmi Inc. (Nasdaq: FAMI) is an agricultural products supplier, processor and retailer of edible mushrooms like Shiitake and Mu Er, as well as other agricultural products. Farmmi sells its products through the established distribution channels. The Company also provides logistics and supply chain services in the United States. For further information about the Company, please visit: https://www.farmmi.com. 

Forward-Looking Statements

The foregoing material may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the Company's product development and business prospects, and can be identified by the use of words such as "may," "will," "expect," "project," "estimate," "anticipate," "plan," "believe," "potential," "should," "continue" or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Should one or more of these risks or uncertainties materialize, or the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the security laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

For more information, please contact:

Farmmi, Inc.
Investor Relations
Tel: +86-0578-82612876
ir@farmmi.com 

 

View original content:https://www.prnewswire.com/news-releases/farmmi-inc-announces-closing-of-3-0-million-underwritten-public-offering-302814696.html

SOURCE Farmmi, Inc.

FAQ

What did Farmmi (NASDAQ:FAMI) announce about its June 30, 2026 public offering?

Farmmi closed a firm commitment underwritten public offering raising about $3.0 million in gross proceeds. According to Farmmi, the transaction closed on June 30, 2026 and included ordinary shares and pre-funded warrants sold to public investors.

How large was Farmmi's June 2026 underwritten public offering and at what price was FAMI sold?

Farmmi’s offering totaled approximately $3.0 million in gross proceeds, with shares priced at $0.25 each. According to Farmmi, pre-funded warrants were priced at $0.24999 with an exercise price of $0.00001, matching the effective share price.

How many shares and pre-funded warrants did Farmmi (FAMI) issue in the June 2026 offering?

Farmmi issued 7,000,000 Class A ordinary shares and pre-funded warrants for 5,000,000 shares. According to Farmmi, each pre-funded warrant is immediately exercisable and remains exercisable until exercised in full, adjusting total share issuance over time.

What will Farmmi use the proceeds from its $3.0 million FAMI stock offering for?

Farmmi plans to use net proceeds, together with existing cash, for general corporate purposes and working capital. According to Farmmi, this capital raise is intended to support ongoing operations rather than any specified acquisition or project.

Does Farmmi's June 2026 FAMI public offering include an over-allotment option?

Yes, Farmmi granted Aegis Capital a 45-day option to buy up to 1,800,000 additional shares. According to Farmmi, this represents 15% of the ordinary shares sold and could modestly increase total proceeds and dilution if fully exercised.

Who managed Farmmi’s June 30, 2026 underwritten offering of FAMI shares?

Aegis Capital acted as the sole book-running manager for Farmmi’s underwritten public offering. According to Farmmi, the deal was conducted under an effective Form F-3 shelf registration statement previously declared effective by the U.S. Securities and Exchange Commission.