SunCar Technology Group Inc. (NASDAQ: SCTG) shares took a hit today after the company announced a $21 million follow-on offering of 2,567,238 shares at $8.18 per share. The morning bell saw Suncar Technologies’ stock decline by 20.6% to $9.17 on Thursday morning.
At the time of this publication, SunCar Technology Group Inc stock (SDA) has witnessed a decline.
SunCar Technology Group Inc
Current Price: $8.05
Change : -3.51
Change (%): (-30.35%)
Volume: 1.4M
Source: Tomorrow Events Market Data
As part of this financial maneuver, the Company is set to issue common warrants to investors, allowing them to purchase up to 3,850,856 Ordinary Shares at an exercise price of $9.00 per share. These Common Warrants will maintain a term of five years from the date of issuance.
The net proceeds from this offering will be allocated towards working capital and general corporate purposes. The offering is anticipated to conclude on or about October 30, 2023, contingent on the fulfillment of customary closing conditions.
Market performance data for SunCar Technologies stands as follows:
– 5 Day: -25.52%
– 1 Month: -22.43%
– 3 Month: -45.42%
– Year-to-Date: -20.63%
– 1 Year: -20.47%
FT Global Capital, Inc. took the helm as the exclusive placement agent for this transaction.
Originally established in 2007, SunCar is revolutionizing the customer experience in the car insurance and aftermarket services sector in China, the globe’s largest passenger vehicle market. SunCar operates cutting-edge online platforms, seamlessly connecting drivers with an extensive array of automotive services and insurance coverage options, all facilitated by a nationwide network of provider partners. Consequently, SunCar has cemented its position as the leader in China’s B2B automotive after-sales services market and the online insurance market for electric vehicles.
The decline in ther stock of SunCar Technology underscores the impact of the recent financial maneuver on investor sentiment and highlights the company’s need to effectively utilize the raised capital for its stated objectives.
