Benzinga | Oct 19, 2021 04:10PM EDT

Mercurity Fintech Holding Reports $5M Private Placement Of ~571M Shares At $0.00875/Share

Mercurity Fintech Holding Inc. (NASDAQ:MFH) ("Mercurity" or the "Company"), a fintech company powered by blockchain technology and provides services including asset digitization, and cross-border remittance technology support, announced today that it has entered into purchase agreements with investors for aggregate gross proceeds of approximately $5 million to the Company, which will be settled in the form of USDC. Pursuant to the private placements, the Company will issue up to 571,428,570 ordinary shares at a purchase price of $0.00875 per ordinary share, and warrants to purchase up to 571,428,570 ordinary shares at agreed prices. The Company's American depositary shares ("ADS") are listed on the Nasdaq Capital Market. Each ADS represents 360 ordinary shares. Mercurity expects to use the net proceeds from the offering for general corporate purposes, including continued investments in purchasing Bitcoin mining hardware, product development, research and development expenses, and working capital.

The private placements are expected to close before the end of October 20, 2021, subject to the satisfaction of customary closing conditions. The investors have agreed to a contractual lock-up restriction of their shares to be acquired in the transaction for 180 days after the closing. The securities issuance is exempt from registration under the Securities Act of 1933, as amended (the "Securities Act") in compliance with Regulation S under the Securities Act.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful before the registration or qualification under the securities laws of any such jurisdiction.