- The stock price of ZW Data Action Technologies Inc (NASDAQ: CNET) is trading at over 30% pre-market as of 6:07 AM ET today. This is why it happened.
The stock price of ZW Data Action Technologies Inc (NASDAQ: CNET) – an integrated online advertising, precision marketing, and data analytics and other value-added services company – is trading at over 30% pre-market as of 6:07 AM ET today. It appears that investors are responding to a Form 8-K filed with the SEC.
Today ZW Data Action Technologies had announced that it has entered into a securities purchase agreement with several institutional investors for a registered direct placement of approximately $18.7 million of shares of common stock of the company at a price of $3.59 per share. This price was set at market price in accordance with the rules of Nasdaq.
ZW Data Action will issue a total of 5,212,000 shares of common stock to the institutional investors. And the Company also completed a concurrent private placement of warrants to purchase shares of common stock to the same institutional investors. The warrants are to purchase up to 2,606,000 shares at an exercise price of $3.59 and have a term of 3.5 years.
The proceeds from this offering are expected to be approximately $17.1 million and will be used for general working capital purposes. And if the warrants are exercised in full, ZW Data Action will receive additional proceeds of approximately $9.4 million. The completion of the placement is expected to occur tomorrow, subject to the satisfaction of customary closing conditions.
FT Global Capital, Inc. acted as the exclusive placement agent in connection with the offering.
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