Mercurity Fintech Holding Inc. a digital fintech group powered by blockchain technology, announced that on November 30, 2022, in connection with its private offering (the “PIPE”), it entered into a Securities Purchase Agreement (the “SPA”) with two investors to offer and sell the Company’s units, each consisting of one ordinary share and three warrants (each, a “Warrant” and collectively, the “Warrants”) for total gross proceeds of $5 million (the “Proceeds”). Net proceeds from the PIPE financing are expected to be used to advance the Company’s business development activities for working capital and other general corporate purposes.
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Among other purposes, the Company intends to use part of the Proceeds to grow its cryptocurrency consultation services in the U.S., including obtaining the “BitLicense” from New York State Department of Financial Services for digital currency related activities although the Company cannot provide any assurance on actually obtaining the “BitLicense” in the near future or at all. “We thank our investors for their confidence in the broad potential of the Company and their support that allows us to accelerate the development of the existing pipeline and further expand the platform,” said the CEO of the Company Shi Qiu.
Pursuant to the SPA, the Company shall issue an aggregate of 3,676,470,589 units at a purchase price of $0.00136 per unit for a total of approximately $5,000,000. Each unit shall consist of one ordinary share and three warrants, with each warrant entitling the investor to purchase one ordinary share at the exercise price of $1/360th per ordinary share subject to certain adjustments and conditions set forth therein. The warrants shall have a term of three years from the issuance date. In connection with the consummation of the PIPE offering, the Company shall pay its financial advisor up to $250,000 out of the gross proceeds as compensation for the advisor’s business and financial advisory services.
The securities described above were sold in a private placement and have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (the “SEC”) or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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