Maker of traditional Chinese medicines, China SXT Pharmaceuticals Inc (NASDAQ:SXTC) has priced the previously announced underwritten public offering of its ordinary shares and prefunded warrants, with gross proceeds of approximately $3.5 million.
- The offering includes 19.8 million shares at $0.18 per share, representing a whopping discount of almost 67% from the last close price of $0.58.
- Underwriters have an option to purchase 2.9 million shares, resulting in gross proceeds of approximately $4.1 million.
- The company will use the net proceeds for general corporate purposes, including working capital and other business opportunities.
- The China-based company also announced that it develops and commercializes the Kuihuapan After-Soaking-Oral TCMP and Zhudanfen Directly-Oral TCMP products.
- The Kuihuapan products can clear heat, calm the liver, dredge collaterals, and relieve pain. Its indications include dizziness, tinnitus, joint pain, hyperuricemia, gout, hypertension, and other symptoms.
- The Zhudanfen products are suitable for sudden cough, asthma, fever, thirst, red eyes, throat obstruction, jaundice, diarrhea, dysentery, constipation, sores, carbuncle, swelling, and poison.
- The company expects the annual output of both Kuihuapan and Zhudanfen to reach 300,000 bottles and achieve sales of about RMB 5 million during the fiscal year ending March 31, 2023.
- Price Action: SXTC shares are down 58.2% at $0.22 during the premarket session on the last check Tuesday.
