Tantech announced a $10 million registered direct offering on Friday and following that the stock plunged heavily. It’s pushing up once again as it surged over 65% on Monday.
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The Chinese-based clean energy firm, Tantech Holdings Ltd. (TANH) was recently trading at its highest in a 52-week high range. The stock suddenly made a massive downward movement following the announcement of a $10 million public offerings.
TANH plunged from $2.78 to $1.28 on Friday. On Nov. 16, 2020, the stock was trading at $3.63 closer to the 52-week high of $3.65.
Shares of Tantech dipped after the company reported that it has made an agreement with certain institutional investors to purchase up to $10 million of common stock shares and registered warrants in a concurrent private placement.
However, the stock took off on Monday when it escalated from $1.43 to as high as $2.34. TANH closed the session at $2.14 up by 64.62%.
The Chinese energy firm is continuing the bullish momentum in the premarket on Tuesday. As we write this at 7:38 A.M. before hours, TANH was rising by 20.66% trading around $2.58.
Today’s rise is driven by the agreement completion as it was expected to close on Nov. 24.
The company was to sell 6.06 million common stock shares to the institutional investors at a per share price of $1.65. Based on the agreement, the investors would purchase with registered warrants for 2.75 million common stock shares.
The purchase agreement also concludes that Tantech will issue unregistered warrants in the private placement. With this the investors would purchase approximately 3.3 million common stock shares.
Under a separate registration statement, the company will register the unregistered warrants within 60-days of closing. Both registered and unregistered warrants will have a maturity time period of 5 years from the date of issuance. These warrants will be exercisable with an immediate effect after the closing at a per share exercise price of $1.81.
Consequently, Tantech will offer warrants for 3.63 million common stock shares to the sole place agent of the offering, Univest Securities, LLC. Based on the private placement with Univest, the warrants will have an exercise price of $1.815 per share.
The company intends to use the net proceeds for general business usage and working capital.
Tantech Holdings Ltd (TANH) has performed quite significantly during the last one-year period. A company with a market cap of almost 62 million did great despite the pandemic. Recently, Tantech’s subsidiary Shangchi Automobile launched two autonomous street sweepers including SC-120A and SC-120B models.
Tantech expects the mass production of these two vehicles in the first half of 2021. Currently, they are under pilot testing, while the company is primarily targeting the local Chinese market. Based on demand, the company will further step foot in Europe and North America.