NaaS Technology Inc. Announces Closing of US$6 Million Registered Direct Offering

Rhea-AI Summary

NaaS Technology Inc. announces the closing of a direct offering of 4,761,905 ADSs with warrants, generating approximately US$6 million in gross proceeds. The offering aims to support EV charging network expansion, R&D activities, and general corporate purposes.

Market Research Analyst

The recent direct offering by NaaS Technology Inc. reflects a strategic move to bolster its financial position and expand its operations. The capital raised, amounting to approximately $6 million, is earmarked for the expansion of the EV charging network, R&D and general corporate purposes. This decision is aligned with the growing demand for EV infrastructure, which is being propelled by the global shift towards electric vehicles. The investment in R&D could potentially lead to technological advancements that may improve the efficiency and cost-effectiveness of EV charging services, thus enhancing NaaS's competitive edge in the market.

However, the issuance of warrants alongside the ADS could dilute existing shareholders' value when exercised, albeit at a higher price of $1.49 per ADS. This could indicate a positive outlook from the company on its future stock performance, as warrants are often used to attract investment by offering potential upside at a later date. Investors should monitor the adoption rates of EVs in China and government policies that could influence the growth trajectory of the EV charging market.

Financial Analyst

The offering's structure, combining ADS and warrants, is a common method to raise capital while providing an incentive for investors through the warrants. The exercise price set at $1.49 suggests confidence in the company's future valuation. The six-month lock-up period before the warrants can be exercised provides a short-term safeguard against immediate dilution. Long-term, the company's stock could experience volatility around the time the warrants become exercisable, depending on the prevailing market conditions and the company's performance.

Investors should evaluate the use of proceeds in the context of NaaS's financial health and the EV charging industry's capital intensity. The $6 million raised may seem modest compared to the capital requirements for substantial network expansion and R&D in this sector, possibly indicating a need for further capital raises in the future. Careful scrutiny of the company's burn rate and subsequent financial statements will be necessary to assess the effectiveness of the capital allocation.

Legal Expert

The legal framework surrounding this transaction is crucial, as it is conducted under an effective shelf registration statement. This mechanism allows companies to prepare for offerings quickly without having to navigate the SEC registration process each time. The mention of the prospectus supplement is significant because it provides transparency and detailed information regarding the use of proceeds and the risks involved. It's important for the stakeholders to understand that such offerings, while beneficial for the company's growth, carry regulatory compliance obligations that must be meticulously followed to avoid legal complications.

The disclaimer in the press release is a standard regulatory requirement, emphasizing that the securities are not being offered or sold where it would be unlawful. This highlights the importance of jurisdictional regulations in securities offerings and the need for companies and investors to be aware of and comply with different securities laws.

BEIJING, March 15, 2024 /PRNewswire/ -- NaaS Technology Inc. (Nasdaq: NAAS) ("NaaS" or the "Company"), the first U.S. listed EV charging service company in China, today announced the closing of its registered direct offering of 4,761,905 American Depositary Shares ("ADS") together with warrants to purchase up to 4,761,905 ADSs at a combined purchase price of US$1.26 per ADS and accompanying warrant (together the "Securities") for total gross proceeds of approximately US$6 million, before deducting commissions and other estimated offering expenses. The warrants have an exercise price of US$1.49, will be exercisable beginning six months following the date of issuance and will expire five years from the initial exercise date.

This offering is being made pursuant to an effective shelf registration statement on Form F-3 (File No 333-273515) previously filed with the U.S. Securities and Exchange Commission (the "SEC"). A prospectus supplement describing the terms of the proposed offering has been filed with the SEC on March 14, 2024.

The net proceeds from this offering will be used for (i) the expansion of the EV charging network coverage, (ii) research and development activities, and (iii) working capital and general corporate purposes, as disclosed in the prospectus supplement filed in connection with the offering.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these Securities, nor shall there be any sale of these Securities 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 NaaS Technology Inc.

NaaS Technology Inc. (Nasdaq: NAAS) is the first U.S. listed EV charging service company in China. The Company is a subsidiary of NewLink Technology Limited, a leading energy digitalization group in China. The Company provides one-stop solutions to energy asset owners comprising charging services, energy solutions and new initiatives, supporting every stage of energy asset's lifecycle and facilitating energy transition. As of September 30, 2023, NaaS had connected 767,611 chargers covering 73,710 charging stations, representing 41.6% and 50.0% of China's public charging market share respectively.

Forward-Looking Statements

This press release contains certain 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 and Private Securities Litigation Reform Act, as amended, including those relating to the timing and completion of the proposed offering and other statements that are predictive in nature. These statements may be identified by the use of forward-looking expressions, including, but not limited to, "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential," "predict," "project," "should," "would" and similar expressions and the negatives of those terms. These statements relate to future events and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any results, performance or achievements expressed or implied by the forward-looking statements. Such factors include the risk factors set forth in the NaaS Technology Inc. filings with the SEC, including, without limitation, its Annual Report on Form 20-F for the year ended December 31, 2022 and its Current Reports on Form 6-K filed in 2023, as well as the risks identified in the shelf registration statement and the prospectus supplement relating to the offering. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this press release. NaaS Technology Inc. undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

For investor and media inquiries, please contact:

Investor Relations
NaaS Technology Inc.
E-mail: ir@enaas.com
Media inquiries:
E-mail: pr@enaas.com 

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SOURCE NaaS Technology Inc.

What is the ticker symbol for NaaS Technology Inc.?

The ticker symbol for NaaS Technology Inc. is NAAS.

How many American Depositary Shares (ADS) were offered in the direct offering?

4,761,905 American Depositary Shares (ADS) were offered in the direct offering.

What is the purchase price for each ADS in the offering?

The purchase price for each ADS in the offering is US$1.26.

What is the exercise price for the warrants in the offering?

The exercise price for the warrants in the offering is US$1.49.

What will the net proceeds from the offering be used for?

The net proceeds from the offering will be used for the expansion of the EV charging network coverage, research and development activities, and working capital and general corporate purposes.