China's SOS drops on $125 mln direct share offering

Sos

30/03/2021 14:23

** U.S.-listed shares of SOS Ltd  SOS.N  down ~17% premarket
after Chinese blockchain co raises equity
    ** SOS says sold 25 mln ADSs and warrants to buy 25 mln ADSs
to certain accredited investors for $125 mln  urn:newsml:reuters.com:*:nPn6728g3a
    ** Offer price of $5 represents 10.7% discount to stock's
Mon close
    ** 5-yr warrants are exercisable immediately and have
exercise price of $5
    ** Co plan to use net offering proceeds to develop its
cloud cryptocurrency mining and cryptocurrency security and
insurance business, and for working capital and general
corporate purposes
    ** SOS has ~124 mln shares outstanding for ~$695 mln market
cap, per Refinitiv data, and ~117 mln of free float
    ** Shares have gained 278% so far this year

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))