TuanChe Ltd. (NASDAQ: TC) stock plummeted in morning trading on Monday after the Chinese integrated automotive marketplace announced the pricing of its direct offering.
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The company has entered into a definitive agreement with investors for the purchase and sale of 5.45 million of TuanChe’s American Depositary Shares (ADS) and warrants to purchase 5.45 million ADS, “at a combined purchase price of $2.75 per ADS (or $2.749 per ADS Equivalent) and the associated warrant.”
The above graph represents the stock price movement over the last three months.
Each associated warrant can be exercised to purchase one ADS for $2.75 where each ADS represents 16 Class A ordinary shares of the company. The gross proceeds from this offering are expected to be around $15 million and the transaction is expected to close on or about November 23.
