Lucas GC Limited Announces Pricing of Follow-On Offering

Rhea-AI Summary

Lucas GC Limited (NASDAQ: LGCL), an AI-driven PaaS company focused on HR and insurance technologies, has announced the pricing of a follow-on offering. The company will issue 32,150,000 ordinary shares at $0.20 per share, aiming to raise $6.43 million in gross proceeds before deducting fees and expenses. The offering, managed by AC Sunshine Securities LLC as placement agent, is expected to close around June 23, 2025. The offering is being conducted on a "best efforts" basis and has been registered with the SEC.

Positive

• Raising $6.43 million in additional capital through the offering
• SEC registration completed and declared effective

Negative

• Significant dilution to existing shareholders with 32.15 million new shares
• Low offering price of $0.20 per share suggests weak market position
• Best efforts offering indicates less certainty of completion compared to firm commitment

NEW YORK, June 20, 2025 (GLOBE NEWSWIRE) -- Lucas GC Limited (NASDAQ: LGCL) (“Lucas” or the “Company”), an artificial intelligence (“AI”) technology-driven Platform-as-a-Service (“PaaS”) company with proprietary technologies applied to the human resources and insurance industry verticals, today announced the pricing of its “best efforts” follow-on offering (the "Offering") of 32,150,000 ordinary shares, par value US$0.000005 per share, of the Company (the "Ordinary Shares") at a public offering price of $0.20 per share, for total gross proceeds of US$6,430,000 before deducting placement agent's fee and offering expenses. The Offering is expected to close on or about June 23, 2025, subject to the satisfaction of customary closing conditions.

AC Sunshine Securities LLC is acting as the placement agent for the Offering.

A registration statement related to the Offering has been filed with, and declared effective by, the United States Securities and Exchange Commission. 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.

This offering is being made only by means of a prospectus forming part of the effective registration statement. Copies of the final prospectus relating to the Offering may be obtained, when available, on the SEC's website located at http://www.sec.gov and may also be obtained from AC Sunshine Securities LLC, 200 E. Robinson Street Suite 295, Orlando, FL 32801.

About Lucas GC Limited
With 19 granted U.S. and Chinese patents and over 75 registered software copyrights in the AI, data analytics and blockchain technologies, Lucas GC Limited is an AI technology-driven PaaS company with over 780,320 agents working on its platform. Lucas’ technologies have been applied to the human resources and insurance industry verticals. For more information, please visit: https://www.lucasgc.com/.

For Investor Inquiries and Media Contact:
https://www.lucasgc.com/ 
ir@lucasgc.com 
T: 818-741-0923

Forward-Looking Statements
Certain statements in this press release are forward-looking statements. 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 the Company believes may affect its financial condition, results of operations, business strategy and financial needs. These forward-looking statements are also based on assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. Investors can find many (but not all) of these statements by the use of words such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "likely to" or other similar expressions. 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 statement and other filings with the SEC.

FAQ

What is the size and price of LGCL's follow-on offering?

LGCL is offering 32,150,000 ordinary shares at $0.20 per share, aiming to raise total gross proceeds of $6.43 million.

When is LGCL's follow-on offering expected to close?

The offering is expected to close on or about June 23, 2025, subject to customary closing conditions.

Who is the placement agent for LGCL's follow-on offering?

AC Sunshine Securities LLC is acting as the placement agent for the offering.

What will LGCL use the proceeds from the offering for?

The press release does not specify the intended use of proceeds from the offering.

What is the impact of LGCL's follow-on offering on existing shareholders?

The offering of 32.15 million new shares will result in dilution of existing shareholders' ownership stakes in the company.