Benzinga | Jan 14, 2021 09:58AM EST

SOS Filing From Late Wednesday Shows Co. Entered Securities Purchase Agreement With Non-Affiliated Institutional Investors; Co. To Sell 13,525,000 ADSs For Gross Proceeds Of ~$25M

On January 7, 2021, SOS Limited (the "Company") entered into certain securities purchase agreement (the "Purchase Agreement") with certain non-affiliated institutional investors (the "Purchasers") pursuant to which the Company agreed to sell 13,525,000 of its American Depositary Shares ("ADSs") and warrants ("Warrants") to purchase 13,525,000 ADSs (the "Offering"), for gross proceeds of approximately $25 million. The Warrants will be exercisable immediately following the date of issuance for a period of five years at an initial exercise price of $1.85. The purchase price for each ADS and the corresponding Warrant is $1.85. Each Warrant is subject to anti-dilution provisions to reflect stock dividends and splits, subsequent rights offerings or other similar transactions, but not as a result of future securities offerings at lower prices. The Warrants contain a mandatory exercise right for the Company to force exercise of the Warrants if the Company's ADSs trade at or above $5.55 for ten (10) consecutive trading days and when certain other conditions are met. Upon the occurrence of a Fundamental Transaction (as defined in the Warrants), the Warrants are subject to mandatory redemption for cash consideration equal to the Black Scholes Value (as defined in the Warrants) of such portion of such Warrant to be redeemed.