Florida-based SkyPeople Fruit Juice Inc. (NASDAQ:SPU) on April 13 tumbled midday by 43.90% to $2.99, after an agreement with investors to buy shares of its common stock to raise an estimated $2.67 million of gross proceeds in a direct offering.
In connection with the offering, SkyPeople Fruit Juice Inc. (NASDAQ:SPU) will issue 862,097 registered shares of common stock at a purchase price of $3.10 per share. Concurrently in a private placement, for each share of common stock purchased by an investor, such investor will receive from the Company an unregistered warrant to purchase one share of common stock. The warrants have an exercise price of $5.20 per share, and shall be initially exercisable six months following issuance and terminate five years following the initial exercise date.
After the offering, SkyPeople Fruit Juice Inc. (NASDAQ:SPU) intends to use the proceeds from the offering to fund working capital and other general corporate purposes.
The offering will close on or before April 17, company said in a press release. Rodman & Renshaw, a unit of H.C. Wainwright & Co., LLC, acted as the exclusive placement agent in connection with this offering.
What Does The Smart Money Sentiment Say?
None of the 742 hedge funds we track hold positions in SkyPeople Fruit Juice Inc. (NASDAQ:SPU), and looking closely at hedge funds, Ken Griffin of Citadel Investment Group had left his position on the company’s shares as of the fourth quarter of 2016.
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The Bottom Line
Traders are dropping their shares of SkyPeople Fruit Juice Inc. (NASDAQ:SPU) after the company announced a direct offering with investors to raise an estimated $2.67 million of gross proceeds. For further reading, here are 11 investing books billionaire Warren Buffett wants you to read.