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China SXT Pharmaceuticals (NASDAQ: SXTC) agrees to up to $30M pre-paid share facility

Filing Impact
(Neutral)
Filing Sentiment
(Neutral)
Form Type
6-K

Rhea-AI Filing Summary

China SXT Pharmaceuticals entered a securities purchase agreement with an institutional investor for up to $30,000,000 in pre-paid purchases of Class A ordinary shares. An initial pre-paid purchase of $3,150,000 principal, less a $150,000 original issue discount, is expected to close on July 6, 2026.

During a two-year commitment period, the company may request additional pre-paid purchases between $250,000 and $3,000,000 each, with a five percent original issue discount and interest at 7% per annum. The investor can acquire shares at 50% of specified market prices, subject to a $0.20 floor price and a 9.99% beneficial ownership cap.

The company engaged Univest Securities as exclusive placement agent, agreeing to pay a 4.5% cash fee on gross proceeds, a 0.5% expense reimbursement, and up to $50,000 of additional expenses. In default, the outstanding balance may be accelerated with interest up to 18% per annum or the legal maximum.

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Insights

China SXT secures a flexible but discounted equity-linked financing facility.

China SXT Pharmaceuticals arranged up to $30,000,000 of pre-paid purchases of Class A shares with an institutional investor. The initial principal is $3,150,000 with a $150,000 original issue discount, and further tranches are available over a two-year commitment period.

Additional pre-paid purchases carry a 5% discount and accrue interest at 7% per year, while the investor’s purchase price for shares is set at 50% of defined market prices, subject to a $0.20 floor and a 9.99% ownership cap. These terms mean actual dilution and cash inflows will depend on future share prices and investor elections.

Univest Securities acts as exclusive placement agent, earning a 4.5% fee plus a 0.5% expense allowance and up to $50,000 of additional costs. The pre-paid purchases include default provisions that allow accelerated repayment at up to 18% interest, so future performance and compliance with covenants will be important within the two-year commitment period.

Commitment Amount $30,000,000 Maximum aggregate pre-paid purchases commitment
Initial Pre-Paid Purchase principal $3,150,000 Principal amount expected to close on July 6, 2026
Original Issue Discount (initial) $150,000 Discount on initial pre-paid purchase principal
Subsequent OID rate 5% Original issue discount on subsequent pre-paid purchases
Interest on subsequent purchases 7% per annum Interest rate on subsequent pre-paid purchases, payable quarterly
Ownership cap 9.99% Maximum beneficial ownership of Class A shares by investor
Floor Price $0.20 Minimum share price under the purchase formula
Placement fee 4.5% of gross proceeds Cash fee payable to Univest Securities
Pre-Paid Purchase financial
"the Company agreed to issue and sell to the Investor one or more pre-paid purchases"
A pre-paid purchase is when payment is made before the product or service is delivered, like buying a concert ticket or putting money on a gift card. For investors, pre-payments matter because they change a company’s cash flow and balance sheet: the seller gets cash up front but records an obligation to deliver later, which affects when revenue is recognized and how future profits and working capital look.
original issue discount financial
"principal amount of $3,150,000, before deducting an original issue discount (the “OID”)"
Original issue discount (OID) is the difference between a debt security’s face value and the lower price at which it is first sold, treated as additional interest that accrues over the life of the instrument. For investors it matters because OID raises the effective yield and changes taxable income and the holding’s cost basis over time — think of buying a $100 voucher for $90 and recognizing the $10 gain as earned interest as the voucher approaches maturity.
Placement Agency Agreement financial
"the Company entered into a placement agency agreement (the “Placement Agency Agreement”) with Univest"
Regulation D regulatory
"in reliance on an exemption from registration under Regulation D, promulgated under the Securities Act"
Regulation D is a set of rules that govern how companies can raise money from investors without going through the full process required for public stock offerings. It provides simplified options for private placements, making it easier for companies to seek investments from a smaller group of investors. For investors, it offers opportunities to invest in private companies, often with fewer restrictions, but also with different levels of risk and disclosure.
beneficial ownership financial
"not exceeding (i) the outstanding balance ... and (ii) 9.99% beneficial ownership of the Company’s outstanding Class A Shares"
Beneficial ownership means the person or entity that actually enjoys the benefits of owning shares or other assets — such as receiving dividends, voting rights, or price gains — even if the legal title is held in another name. For investors it matters because knowing who truly controls and profits from a company reveals who can influence decisions, exposes potential conflicts of interest or hidden concentration of power, and affects transparency and risk in the stock.
Floor Price financial
"but not less than the floor price of $0.20 (the “Floor Price”)"
The floor price is the minimum price at which a security, asset, or offering will be sold or accepted, acting like a seller’s “bottom line” or a reserve in an auction. For investors it matters because it sets a visible downside limit and can influence trading, valuation, and expectations of risk—like knowing there’s a safety net that a sale won’t go below a set level.
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FAQ

What financing agreement did China SXT Pharmaceuticals (SXTC) enter on July 3, 2026?

China SXT Pharmaceuticals entered a securities purchase agreement for up to $30,000,000 in pre-paid purchases of Class A shares. An institutional investor will fund an initial $3,150,000 principal tranche, providing working capital and general corporate funding flexibility over a defined commitment period.

How much initial funding does China SXT Pharmaceuticals (SXTC) expect from the pre-paid purchase?

The initial pre-paid purchase has a principal amount of $3,150,000 with a $150,000 original issue discount. This initial closing is expected on July 6, 2026, giving China SXT access to near-term capital before any additional optional tranches under the two-year commitment period.

What are the pricing terms for SXTC shares under the pre-paid purchase structure?

The investor may buy Class A shares at the lower of 50% of the signing-date Nasdaq closing price or 50% of the lowest closing price in the prior 180 trading days. The share price cannot fall below a $0.20 floor and is subject to certain adjustment events.

Is there a cap on the investor’s ownership in China SXT Pharmaceuticals (SXTC)?

Yes. Each time the investor purchases Class A shares, the holdings cannot exceed 9.99% beneficial ownership of outstanding Class A shares. This cap limits concentration of ownership and constrains the size of each share purchase relative to the company’s total equity.

What fees will China SXT Pharmaceuticals (SXTC) pay to Univest Securities?

China SXT will pay Univest a cash fee equal to 4.5% of aggregate gross proceeds from the offering and a 0.5% non-accountable expense reimbursement. It will also reimburse reasonable travel and out-of-pocket expenses up to $50,000, subject to FINRA Rule 5110(f)(2)(D).

How long can China SXT Pharmaceuticals (SXTC) draw additional pre-paid purchases?

China SXT may request additional pre-paid purchases during a two-year commitment period following the initial closing. Each subsequent request must be between $250,000 and $3,000,000, or the remaining unused commitment amount, and is subject to specified conditions in the agreement.

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of July 2026

 

Commission file number: 001-38773

 

CHINA SXT PHARMACEUTICALS, INC.

(Translation of registrant’s name into English )

 

178 Taidong Rd North, Taizhou

Jiangsu, China

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F ☒       Form 40-F ☐

 

 

 

 

INFORMATION CONTAINED IN THIS FORM 6-K REPORT

 

Entry into a Material Definitive Agreement.

 

On July 3, 2026, China SXT Pharmaceuticals Inc. (the “Company”) entered into a securities purchase agreement (the “Securities Purchase Agreement”) with certain institutional investor (the “Investor”). Pursuant to the Securities Purchase Agreement, the Company agreed to issue and sell to the Investor one or more pre-paid purchases (each, a “Pre-Paid Purchase” and collectively, the “Pre-Paid Purchases”) at an aggregate purchase price of up to $30,000,000 (the “Commitment Amount”) for the purchase of the Company’s Class A ordinary shares with no par value (the “Class A Shares”). The date of the issuance and sale of the initial Pre-Paid Purchase in the principal amount of $3,150,000, before deducting an original issue discount (the “OID”) of $150,000, pursuant to the Securities Purchase Agreement (the “Initial Pre-Paid Purchase”) is expected to be July 6, 2026 (the “Closing Date”). The proceeds from the Pre-Paid Purchases are expected to be used for working capital and other corporate purposes.

 

The Securities Purchase Agreement also provides subsequent closing for the Investor up to the Commitment Amount before the two-year period after the closing of the Initial Pre-Paid Purchase (the “Commitment Period”). Within the Commitment Period, subject to certain specified conditions, the Company may request the issuance of additional Pre-Paid Purchases to the Investor, with each purchase amount no less than $250,000, and no more than $3,000,000 or the unused portion of the Commitment Amount, which is the lesser. The OID for each subsequent Pre-Paid Purchase after the Initial Pre-Paid Purchase will be five percent (5%) of the amount set forth in the applicable Request (as defined in the Securities Purchase Agreement) and each subsequent Pre-Paid Purchase will accrue interest at the rate of seven percent (7%) per annum payable quarterly.

  

Pursuant to the Securities Purchase Agreement, the Company will file a registration statement on Form F-3 under the Securities Act of 1933, as amended (the “Securities Act”), to register the resale of the Class A Shares and any other Class A Shares issuable pursuant to the Pre-Paid Purchases within forty-five (45) days after the Closing Date.

 

Following the funding of each Pre-Paid Purchase, the Investor has the right, but not the obligation, to purchase from the Company its Class A Shares not exceeding (i) the outstanding balance of the funded amount, and (ii) 9.99% beneficial ownership of the Company’s outstanding Class A Shares. The purchase price of the Class A Shares will be the lower of: (a) the market closing price of the Class A Shares on the Nasdaq Capital Market on the date upon signing the Securities Purchase Agreement, multiplied by 50%, and (b) the lowest market closing price of the Class A Shares on the Nasdaq Capital Market during the One Hundred and Eighty (180) trading days immediately preceding the date of the applicable purchase notice date, multiplied by 50%, in each case rounded down to the nearest two (2) decimal places and subject to adjustment in the event of a stock split, stock dividend, recapitalization, or similar transaction, but not less than the floor price of $0.20 (the “Floor Price”).

 

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The Securities Purchase Agreement contains customary representations, warranties, covenants, and closing conditions. In an event of default as specified in the Pre-Paid Purchase, the Investor may accelerate repayment, requiring the outstanding balance to become immediately due, with interest accruing at a rate of the lesser of eighteen percent (18%) per annum or the maximum rate permitted under applicable law.

 

In connection with the foregoing transactions (the “Offering”), on July 3, 2026, the Company entered into a placement agency agreement (the “Placement Agency Agreement”) with Univest Securities, LLC (“Univest”), pursuant to which Univest agreed to act as the exclusive placement agent in connection with the Offering.

 

As compensation to Univest, the Company agreed to pay Univest a cash fee equal to four and a half percent (4.5%) of the aggregate gross proceeds received by the Company from the sale of the securities in the Offering, a non-accountable expense reimbursement in an amount equal to half percent (0.5%) of the gross proceeds of the Offering, and reimbursement of reasonable travel and out-of-pocket expenses, including legal counsel fees and disbursements, in an amount not to exceed an aggregate of $50,000, subject to compliance with FINRA Rule 5110(f)(2)(D).

 

The offer and sale of these securities were not registered under the Securities Act, in reliance on an exemption from registration under Regulation D, promulgated under the Securities Act and the Company did not engage in any general solicitation in connection with such offer and sale.

 

The foregoing description of the Securities Purchase Agreement, the Placement Agency Agreement and the transactions contemplated thereby do not purport to be complete and are qualified in their entirety by reference to the full text of the Securities Purchase Agreement and the Placement Agency Agreement, which are filed as Exhibit 10.1 and 10.2 hereto, respectively, and incorporated by reference.

 

INCORPORATION BY REFERENCE

 

This Form 6-K and the exhibits thereto, including any amendment and report filed for the purpose of updating such document, shall be deemed to be incorporated by reference into each of i) the Company’s registration statement on Form S-8 (No. 333-286212) filed with the SEC on March 28, 2025 and (ii) the Company’s registration statement on Form F-3 (No. 333-291428) filed with the SEC on November 10, 2025 and to be a part thereof from the date on which this Form 6-K is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.

 

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EXHIBIT INDEX

 

Exhibit No.   Description
10.1*^   Form of Securities Purchase Agreement, dated July 3, 2026, between China SXT Pharmaceuticals Inc. and certain institutional investor
10.2*   Placement Agency Agreement, dated July 3, 2026, between China SXT Pharmaceuticals Inc. and Univest Securities, LLC

 

* Certain schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The registrant hereby undertakes to furnish copies of any of the omitted schedules upon request by the Securities and Exchange Commission.
^ Certain portions of the exhibit have been omitted pursuant to Item 601(a)(6) of Regulation S-K. The registrant hereby agrees to furnish a copy of any omitted portion to the Securities and Exchange Commission upon request.

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: July 6, 2026

 

  China SXT Pharmaceuticals, Inc.
     
  By: /s/ Feng Zhou
  Name: Feng Zhou
  Title: Co-Chief Executive Officer

 

  By: /s/ Simon Lim Sze Beng
  Name: Simon Lim Sze Beng
  Title: Co-Chief Executive Officer

 

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Filing Exhibits & Attachments

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