SunCar Technology Group Inc. (the “Company” or “SunCar”) (NASDAQ:SDA), a leading provider of digitalized enterprise automotive after-sales services and online auto insurance intermediation services in China, today announced that it has entered into certain securities purchase agreements with certain institutional investors for a follow-on offering of $21 million of Class A Ordinary Shares, par value $0.0001 per share (the “Ordinary Shares”) at a price of $8.18 per share. The Company will issue a total of 2,567,238 Ordinary Shares to the institutional investors. As part of the transaction, the Company will issue to the investors certain common warrants (“Common Warrants”) for the purchase of up to 3,850,856 Ordinary Shares at an exercise price of $9.00 per share, which Common Warrants will have a term of five years from the date of issuance.
The net proceeds from this offering will be used for working capital and general corporate purposes. The offering is expected to close on or about October 30, 2023, subject to the satisfaction of customary closing conditions.
FT Global Capital, Inc. acted as the exclusive placement agent for the transaction.
These securities are being offered through a prospectus contained in the Company’s effective registration statement on Form F-1(Filing No. 333-275144) which has been filed with and declared effective by the Securities and Exchange Commission (the “SEC”) on October 25, 2023. A final prospectus related to the offering will be filed with the SEC and may be obtained via the SEC’s website at www.sec.gov.. This press release does not constitute an offer to sell or the solicitation of an offer to buy, and these securities cannot be sold in any state in which this offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.
For further details of this transaction, please see the Form 6-K to be filed with the SEC.
