American Trust Investment Services Serves as Exclusive Placement Agent in $9 Million Follow-On Offering for Nova LifeStyle, Inc.

Rhea-AI Summary

Nova LifeStyle (NASDAQ: NVFY) has completed a $9 million follow-on public offering with American Trust Investment Services (ATIS) as the exclusive placement agent. The offering included 9,836,054 shares of common stock and 19,672,108 warrants, priced at $0.915 per share with accompanying warrants.

Each share came with two five-year warrants exercisable at $1.098 (120% of the offering price). Nova LifeStyle, a U.S.-based designer and marketer of modern furniture, plans to use the proceeds for working capital, marketing initiatives, debt repayment, and general corporate purposes.

Positive

• Secured $9 million in gross proceeds to strengthen working capital
• Strategic debt reduction through proceeds allocation
• Warrant exercise price set at 20% premium to offering price

Negative

• Potential dilution for existing shareholders due to 9.8M new shares
• Additional dilution possible if warrants are exercised
• Offering price likely represents a discount to market price

Transaction Underscores ATIS's Execution Expertise in Tech-Driven Consumer Sectors

NEW YORK, Sept. 5, 2025 /PRNewswire/ -- American Trust Investment Services, Inc. (ATIS) is pleased to announce that it served as the exclusive placement agent for Nova LifeStyle, Inc. (NASDAQ: NVFY) in connection with its follow-on public offering. The offering consisted of 9,836,054 shares of common stock and 19,672,108 warrants, priced at $0.915 per share and accompanying warrants, resulting in gross proceeds of $9 million before placement agent fees and offering expenses.

Each share of common stock was issued together with two five-year warrants, each exercisable at $1.098, representing 120% of the public offering price. The securities were offered and sold together but issued separately upon closing.

Nova LifeStyle is a U.S.-based designer and marketer of modern lifestyle furniture under brands including Nova Brands and Diamond Sofa. The company intends to use the net proceeds for working capital, marketing initiatives, repayment of certain short-term debt, and general corporate purposes.

"At ATIS, we are committed to being strategic execution partners for innovative companies positioned for growth," said James F. Dever, Chief Executive Officer of ATIS. "Nova LifeStyle's leadership and operational focus made this offering an exciting opportunity to support a dynamic consumer-facing business."

"This transaction reflects the strength of our team and our expanding presence in the domestic capital markets," added Ian E. Lippy, Chief Operating Officer of ATIS. "We are proud to have played a role in Nova LifeStyle's growth strategy and look forward to their continued success."

American Trust continues to expand its track record in the small and mid-cap markets, offering specialized investment banking services for emerging and established public companies.

About American Trust Investment Services, Inc.

American Trust Investment Services, Inc. (ATIS) is a leading investment bank and financial services firm providing customized capital markets solutions to high-growth companies. Headquartered in Chicago with offices nationwide, ATIS offers investment banking, brokerage, and advisory services. The firm is known for its strategic approach to underwriting, distribution, and capital raising.

To learn more, visit www.amtruinvest.com

Media & Company Contact:
Ian E. Lippy
American Trust Investment Services, Inc.
media@amtruinvest.com 

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SOURCE American Trust Investment Services, Inc.

FAQ

What is the size and structure of Nova LifeStyle's (NVFY) follow-on offering in 2025?

Nova LifeStyle's offering consists of 9,836,054 shares at $0.915 per share and 19,672,108 warrants, raising $9 million in gross proceeds.

How will Nova LifeStyle (NVFY) use the proceeds from its $9M offering?

The proceeds will be used for working capital, marketing initiatives, repayment of short-term debt, and general corporate purposes.

What are the terms of the warrants in NVFY's 2025 offering?

Each share comes with two five-year warrants, exercisable at $1.098 (120% of the offering price).

Who served as the placement agent for Nova LifeStyle's (NVFY) 2025 offering?

American Trust Investment Services (ATIS) served as the exclusive placement agent for the offering.