AZI Plans to Subscribe for US$100 Million of Token Cat Limited Shares at US$30 per Share, Strengthening Automotive Group-Buying Channels and Supporting AZI’s Global Expansion Strategy
Rhea-AI Summary
Token Cat (Nasdaq: TC) and Autozi (Nasdaq: AZI) reached a preliminary consensus for AZI to subscribe for newly issued Token Cat shares at US$30 per share with an intended total investment of approximately US$100 million on a negotiated basis.
The proposed transaction is preliminary, subject to definitive agreements, Nasdaq and regulatory approvals, and further negotiation. If completed, Token Cat expects the proceeds to strengthen its capital base and support investments in automotive group-buying channels, user operations, digital marketing, and related cooperation with AZI.
Positive
- Planned equity subscription of approximately US$100 million at US$30/share
- Expected to strengthen Token Cat’s capital base for growth investments
- Funding earmarked for automotive group-buying, user operations, digital marketing
Negative
- Transaction is preliminary; no definitive agreement has been executed
- Consummation subject to Nasdaq rules, regulatory approvals, and negotiations
News Market Reaction – TC
On the day this news was published, TC declined 21.77%, reflecting a significant negative market reaction. Argus tracked a trough of -52.5% from its starting point during tracking. Our momentum scanner triggered 16 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $7M from the company's valuation, bringing the market cap to $26M at that time. Trading volume was very high at 4.9x the daily average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peers show mixed moves today: some up (e.g., ABLV 8.31%), others down (e.g., FLNT -4.19%), suggesting TC’s move is more stock-specific.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 02 | Crypto policy approval | Positive | -0.7% | Board approved up to <b>$1 billion</b> crypto asset investment policy. |
| Nov 26 | COO appointment | Positive | +0.6% | Hired blockchain expert Sav Persico as COO for crypto strategy. |
| Nov 20 | Sales cooperation deal | Positive | -5.6% | Signed cross-border cooperation targeting <b>$1 billion</b> overseas sales. |
| Nov 14 | Fundraising evaluation | Neutral | -0.7% | Authorized U.S. unit to evaluate up to <b>$500 million</b> fundraising. |
| Aug 27 | Reverse ADS split | Neutral | +16.7% | Announced <b>1-for-20</b> reverse ADS ratio change on Nasdaq. |
Recent strategic and partnership announcements have sometimes seen muted or negative next-day reactions, even when the news was expansionary.
Over the last few months, Token Cat pursued several transformative initiatives. On Aug 27, it announced a 1-for-20 reverse ADS split, followed by authorization of up to $500 million in potential fundraising for nuclear fission-related projects on Nov 14. Subsequent news included a $1 billion cross-border sales cooperation target on Nov 20, the appointment of COO Sav Persico on Nov 26, and a $1 billion crypto asset investment policy on Dec 2. Today’s planned equity subscription supports capital needs for its automotive platform strategy.
Market Pulse Summary
The stock dropped -21.8% in the session following this news. A negative reaction despite the planned AZI subscription would fit prior instances where ambitious strategic announcements, such as the $1 billion crypto policy and the Ouyi cooperation, preceded weak next-day performance. The market may have focused on the preliminary, non-binding nature of the agreement and uncertainty around final terms and timing. Any pressure could also reflect broader concerns about execution risk across Token Cat’s multiple initiatives and prior fundraising evaluations up to $500 million.
Key Terms
nasdaq rules regulatory
group buying technical
safe harbor statement regulatory
AI-generated analysis. Not financial advice.
Beijing, China, Dec. 17, 2025 (GLOBE NEWSWIRE) -- Token Cat Limited (Nasdaq: TC) (the “Company” or “Token Cat”)Today announced that Autozi Internet Technology (Global) Ltd. (Nasdaq: AZI) (“AZI”), a leading enterprise in China’s automobile sales and aftersales services sector, has reached a preliminary consensus with the Company on a proposed equity investment and business cooperation. Pursuant to the proposed arrangement, AZI plans to subscribe for newly issued shares of Token Cat at a price of US
Under the proposed arrangement, AZI plans to subscribe for newly issued shares of Token Cat at a price of US
According to the current preliminary framework, the proposed subscription is expected to be conducted through a negotiated transaction. The final structure of the transaction, the number of shares to be issued, the closing arrangements, and other key terms remain subject to further negotiation between the parties and the execution of definitive, legally binding agreements. The proposed transaction will also be subject to compliance with applicable laws and regulations, relevant Nasdaq rules, and may require regulatory approvals as well as the completion of necessary internal corporate approval procedures of both parties.
The Company expects that, if the proposed subscription transaction progresses successfully, it would strengthen Token Cat’s capital base and provide additional resources to support its continued investment in automotive group buying channels, user operations, digital marketing initiatives, and related business areas. In parallel, the parties intend to use this proposed cooperation as an opportunity to further explore potential collaboration across automotive sales, after-sales services, channel integration, and related business models, with a view toward identifying possible synergies.
Token Cat noted that the proposed cooperation with Autozi Internet Technology is consistent with the Company’s long-term development strategy in the automotive consumption and services sector. Leveraging AZI’s industry experience and resource advantages in automotive sales and after-sales services, together with Token Cat’s platform operations and group buying capabilities, the two parties may explore multi-level cooperation models, subject to compliance with applicable laws and regulations.
The Company cautions that the proposed subscription remains at a preliminary stage. No definitive agreement has been executed, and there can be no assurance that the transaction will be completed. The consummation of the transaction, the final terms of any definitive agreement, the timing of completion, and the actual transaction size are all subject to uncertainty. The Company will make timely disclosures in accordance with applicable securities laws and Nasdaq rules as the matter progresses.
About Token Cat Limited (Nasdaq: TC)
Token Cat Limited (Nasdaq: TC) focuses on empowering automotive consumption and service scenarios through digital technologies and platform-based solutions. The Company is committed to building an integrated internet platform covering vehicle selection, purchasing, usage, and after-sales services. Through group buying models, online operations, and a diversified partner network, Token Cat provides consumers with cost-effective vehicle purchasing solutions and convenient service experiences.
About Autozi Internet Technology (Global) Ltd.(Nasdaq: AZI)
Autozi Internet Technology (Global) Ltd. (Nasdaq: AZI) is a leading automotive sales and after-sales service company. Its business spans vehicle sales, maintenance and repair, financial and insurance services, extended warranties, and other value-added services. The company is actively advancing its global expansion strategy and is building a comprehensive automotive service network serving customers worldwide.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, the Company's business plans and development, business outlook, which can be identified by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.
For investor and media inquiries, please contact: lydia.hu@tuanche.com
FAQ
What is the proposed AZI investment in Token Cat (TC) announced on December 17, 2025?
Is the AZI subscription for Token Cat (TC) finalized or firm?
How would the proposed AZI investment affect Token Cat (TC) operations?
Will the AZI-Token Cat (TC) deal require regulatory or Nasdaq approval?
What strategic cooperation will AZI and Token Cat (TC) explore after the investment?
When will Token Cat (TC) provide updates on the AZI proposed subscription?
