Benzinga | Jan 18, 2022 06:51AM EST

China SXT Pharmaceuticals, Inc. Prices $3.5M Underwritten Public Offering Of Ordinary Shares; 19.8M Shares At $0.18/Share

China SXT Pharmaceuticals, Inc. ("SXTC" or the "Company"), (NASDAQ:SXTC), a specialty pharmaceutical company focusing on the research, development, manufacturing, marketing, and sales of Traditional Chinese Medicine Pieces ("TCMPs"), including Advanced TCMPs (Directly-Oral TCMP and After-Soaking-Oral TCMP), fine TCMPs, regular TCMPs, and TCM Homologous Supplements ("TCMHS"), today announced the pricing of an underwritten public offering of its ordinary shares and prefunded warrants to purchase ordinary shares, with gross proceeds to the Company expected to be approximately $3.5 million, before deducting underwriting discounts and commissions and other estimated expenses payable by the Company. The Offering equates to 19,806,760 of the Company's ordinary shares at a price of $0.18 per share. The pre-funded warrants are offered at the same price per share as the ordinary shares, less the $0.01 per share exercise price of each pre-funded warrant. The Company intends to use the net proceeds from this offering for general corporate purposes, including, but not limited to, working capital and other business opportunities.

In addition, the Company granted the underwriters a 45-day option to purchase 2,971,014 additional ordinary shares at the public offering price to cover over-allotments, if any. If this option is exercised in full, the gross proceeds of the over-allotment would be approximately $4.1 million before deducting underwriting discounts, commissions and other offering expenses.

The closing of the Offering is expected to occur on January 20, 2022, subject to customary closing conditions.