AEI Stock: 34.38% Decrease Explanation

By Amit Chowdhry ● May 11, 2021
  • The stock price of Alset Ehome International Inc (NASDAQ: AEI) decreased by 34.38%. This is why it happened.

The stock price of Alset Ehome International Inc (NASDAQ: AEI) – a diversified holding company principally engaged through its subsidiaries in property development, digital transformation technology and biohealth activities – decreased by 34.38%. Investors were responding negatively to the company announcing the pricing of an underwritten public offering of 4,700,637 Units at a price to the public of $5.07 per Common Unit, with each Common Unit consisting of (a) one share of common stock, par value $0.001 per share, (b) one Series A warrant to purchase one share of Common Stock with an initial exercise price of $5.07 per whole share and (c) one Series B warrant to purchase one-half of a share of Common Stock with an initial exercise price of $6.59 per whole share. 

The Series A Warrants and Series B Warrants are going to be exercisable immediately upon issuance and will expire on the 5th anniversary of the original issuance date. And the Offering also consists of 1,611,000 pre-funded units at a public offering price of $5.06 with each Pre-funded Unit consisting of (a) one Pre-funded Warrant, (b) one Series A warrant and (c) one Series B warrant. 

And the Pre-Funded Warrants have an exercise price of $0.01 per share. The gross proceeds from the Offering, before deducting underwriting discounts and commissions and estimated Offering expenses, are expected to be approximately $32 million. 

Plus the company has granted the underwriters a 45-day option to purchase additional shares of common stock and/or pre-funded Warrants, representing up to 15% of the Common Stock and Pre-funded Warrants sold in the Offering and/or additional Series A and Series B Warrants, representing up to 15% of the Series A and Series B Warrants sold in the base offering, solely to cover over-allotments, if any — which would increase the total gross proceeds of the offering to approximately $36.1 million, if the over-allotment option is exercised in full.

The offering is expected to close on May 13, 2021, subject to the satisfaction of customary closing conditions. Aegis Capital is acting as sole book-running manager for the Offering.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.