Benzinga | Apr 9, 2021 05:55AM EDT

LIZHI Priced ~3,6M ADS Registered Direct Offering

LIZHI INC. ("LIZHI" or the "Company") (NASDAQ:LIZI) announced today that it has entered into a securities purchase agreement with a certain institutional investor to purchase $30,000,002 worth of its American Depositary Shares ("ADS") and warrants in a registered direct offering.

Under the terms of the securities purchase agreement, the Company has agreed to sell 3,685,504 ADSs and warrants to purchase 2,764,128 ADSs. The warrants will be exercisable immediately upon the date of issuance and have an exercise price of $8.14. The warrants will expire five years from the date of issuance. The purchase price for one ADS and three-quarters corresponding warrant will be $8.14. The gross proceeds to the Company from the registered direct offering are estimated to be $30,000,002 before deducting the placement agent's fees and other estimated offering expenses. The registered direct offering is expected to close on or about April 13, 2021, subject to the satisfaction of customary closing conditions.

The Company intends to use the proceeds from the offering for the development of its online audio business in both overseas markets and mainland China and other general corporate purposes.

Kingswood Capital Markets, division of Benchmark Investments, Inc. is acting as the exclusive placement agent in connection with this offering.