Universe Pharma Announces Direct Offering Of $15 Mln Of Shares; Stock Plunges

(RTTNews) - Universe Pharmaceuticals Inc. (UPC), a Chinese drug maker, said on Monday that it has signed an agreement with several investors to sell its 18.750 million shares, par value $0.28125 per share, or pre-funded warrants in lieu thereof, at $0.80 per share in a registered direct offering.

The transaction is expected to close on or about December 10 and gross proceeds from the offering to the company are expected to be around $15 million.

The purchase price for the pre-funded warrants is identical to the purchase price for shares, less the exercise price of $0.001 per share.

Universe Pharmaceuticals also agreed to issue to the same investors warrants to purchase up to 18.750 million shares at $0.80 per share. The warrants will have a 5-year term from the date of issuance.

Univest Securities, LLC is acting as the sole placement agent.

UPC was down by 54.57 percent at $1.54 in the pre-market trade on the Nasdaq.