Charming Medical Limited Announces Full Exercise of Representative's Over-allotment Option
Rhea-AI Summary
Charming Medical (Nasdaq: MCTA) announced full exercise of the underwriters' 15% over-allotment option, adding 240,000 Class A ordinary shares at the public offering price of $4.00 per share. The over-allotment generated gross proceeds of $0.96 million, bringing aggregate gross proceeds from the initial public offering to approximately $7.36 million before underwriting discounts and offering expenses.
The company's Class A ordinary shares began trading on the Nasdaq Capital Market on October 21, 2025. The company said it intends to use net proceeds for business expansion, strategic investments and acquisitions, research and development, and general working capital.
Positive
- Over-allotment proceeds of $0.96 million
- Aggregate gross proceeds increased to $7.36 million
- Shares commenced trading on Nasdaq on Oct 21, 2025
Negative
- Share dilution: 240,000 additional shares (15% of the 1.6M offering)
- Proceeds stated before underwriting discounts and offering expenses
News Market Reaction
On the day this news was published, MCTA gained 46.95%, reflecting a significant positive market reaction. Argus tracked a peak move of +127.9% during that session. Our momentum scanner triggered 33 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $112M to the company's valuation, bringing the market cap to $350M at that time.
Data tracked by StockTitan Argus on the day of publication.
The Class A Ordinary Shares of the Company commenced trading on the Nasdaq Capital Market on October 21, 2025, under the ticker symbol "MCTA." The gross proceeds from this Over-allotment closing were
The Offering was conducted on a firm commitment basis. Cathay Securities, Inc. acted as the representative of the underwriters for the Offering. Ortoli Rosenstadt LLP, Harney Westwood & Riegels, and Fairbairn Catley Low & Kong acted as
The Offering was conducted pursuant to the Company's registration statement on Form F-1 (File No. 333-287258), as amended, previously filed with, and subsequently declared effective by the United States Securities and Exchange Commission (the "SEC") on September 30, 2025. A final prospectus describing the terms of the Offering was filed with the SEC and is available on the SEC's website at www.sec.gov. The Offering was made only by means of a prospectus, forming a part of the effective registration statement. Alternatively, electronic copies of the prospectus relating to the Offering may be obtained from Cathay Securities, Inc., by standard mail to 40 Wall St., Suite 3600,
This news release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor will there be any sale of the securities in any state or 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 jurisdiction.
About Charming Medical Limited (Nasdaq: MCTA)
Charming Medical Limited (the "Company") is a Hong Kong-based provider of Traditional Chinese Medicine (TCM)-inspired therapies and products. The Company integrates TCM principles with modern technology to enhance quality of life and promote holistic well-being. Through its four wellness centers in
Forward-Looking Statement
This press release contains forward-looking statements. 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. These forward-looking statements include, without limitation, the Company's intended use of proceeds from the sale of the Company's Class A Ordinary Shares in the Offering. 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 uncertainties related to market conditions and other factors discussed in the "Risk Factors" section of the registration statement filed 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.
View original content:https://www.prnewswire.com/news-releases/charming-medical-limited-announces-full-exercise-of-representatives-over-allotment-option-302597133.html
SOURCE Charming Medical Limited
FAQ
What did Charming Medical (MCTA) announce on October 28, 2025 about the IPO over-allotment?
How much total gross proceeds did Charming Medical (MCTA) raise after the over-allotment?
When did Charming Medical (MCTA) begin trading on Nasdaq and under what ticker?
How will Charming Medical (MCTA) use the net proceeds from the offering?
Who acted as representative of the underwriters for Charming Medical's (MCTA) offering?
