ORIGIN AGRITECH LIMITED announced that it has entered into a Securities Purchase Agreement with two investors for the sale of 1,250,000 ordinary shares at an issue price of $2.37 per share, for gross proceeds of $2,962,500 on August 21, 2024. The shares to be sold under the terms of the SPA will represent 19.73% of the issued and outstanding shares of the Company as of immediately prior to the date of the SPA. The share price was calculated on the average of the closing price of an ordinary shares for the five days immediately before the signing of the SPA.
The sale of the ordinary shares will be three tranches. The first tranche, representing 50% of the shares to be sold, will be on the signing and consummation of the initial closing requirements of the SPA. The second tranche, representing 20% of the shares to be sold, will be shortly after the filing of a registration statement with the US Securities and Exchange Commission (?SEC?) providing for the resale of all the shares under the SPA.
The third tranche, representing 30% of the shares to be sold, will be shortly after the SEC has declared effective the registration statement providing for the resale of the shares sold pursuant to the SPA.
