Ruanyun Edai Technology Inc. (RYET) agrees to $100M share purchase deal with ARC
Rhea-AI Filing Summary
Ruanyun Edai Technology Inc. entered into an equity purchase agreement with ARC Group International Ltd., giving the company the option to sell up to
ARC cannot buy shares if that would take its beneficial ownership above
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Insights
Ruanyun sets up a flexible $100M equity facility with modest initial dilution.
Ruanyun Edai Technology Inc. has arranged a committed equity facility of up to
To secure ARC’s commitment, Ruanyun issued 1,200,000 commitment shares at a deemed price of
Actual usage of the facility depends on Ruanyun’s future decisions and SEC effectiveness of one or more resale registration statements. The potential availability of up to
FAQ
What equity financing agreement did Ruanyun Edai Technology Inc. (RYET) enter into?
Ruanyun Edai Technology Inc. entered into an equity purchase agreement with ARC Group International Ltd.. Under this agreement, ARC has committed to purchase, from time to time at Ruanyun’s discretion, up to
How is the share purchase price determined under Ruanyun Edai Technology Inc. (RYET) facility with ARC?
When Ruanyun elects to sell shares under the facility, ARC will purchase registered ordinary shares at a price equal to a specified discount of between
What ownership and trading restrictions apply to ARC in the Ruanyun Edai Technology Inc. (RYET) agreement?
ARC may not purchase shares under the facility if doing so would cause its beneficial ownership to exceed
What consideration did Ruanyun Edai Technology Inc. (RYET) provide to ARC for the $100 million equity facility?
As consideration for ARC’s commitment, Ruanyun issued 1,200,000 ordinary shares to ARC as commitment shares at a deemed price of
Is Ruanyun Edai Technology Inc. (RYET) obligated to sell shares under the equity purchase agreement?
No. Ruanyun is not obligated to make any sales under the facility. In addition, no sales of shares to ARC under the facility can occur unless one or more SEC registration statements covering the resale of the shares issuable under the facility are filed and declared effective.
What regulatory filings are required before Ruanyun Edai Technology Inc. (RYET) can use the ARC equity facility?
Ruanyun is required to file one or more registration statements with the SEC registering the resale of the shares issuable under the facility. Sales of such shares to ARC may only occur after the applicable registration statement has been declared effective by the SEC.