Skypeople Fruit Juice Inc (NASDAQ:SPU) Announces $2,672,500 Registered Direct Offering

Skypeople Fruit Juice Inc (NASDAQ:SPU)

Skypeople Fruit Juice Inc (NASDAQ:SPU) has announced an agreement with a number of institutional investors that will see the investors buy the company’s shares of common stock for a gross value of $2,672,500 in a registered direct public offering. The offering is expected to run up to April 17, 2017 and will be subject to all customary closing requirements.

In regards to the offering, a total of 862,097 registered shares of common stock will be issued at a per share price of $3.10. Simultaneously, in a private offering, investors will be entitled to unregistered warrants to buy one share of the company’s common stock for every share of common stock bought. The warrants will be priced at $5.20 per share and have an exercise period of six months after issuance. Rodman & Renshaw, a subsidiary of H.C. Wainwright & Co., LLC has been appointed to be the agent of the offering.

The company’s shares of common stock will be sold pursuant to a statement of registration on Form S-3 that the company filed at the Securities and Exchange Commission. The company expects to raise net proceeds from the offering amounting to $2,405,500. The proceeds will be used to fund the company’s working capital account in addition to other general expenses.

In other segments, Skypeople Fruit Juice has announced signing an agreement with Xi’an Hedetang E-Commerce Co., Ltd to market and commercialize its products on Xunqin Mall, the company’s open platform. The deal will involve marketing the company’s products Hede Jiachuan and Hedetang and the agreement will take one year.

The Xunqin Mall is co-owned by Shenzhen Weipin and China Mobile Group Shaanxi Company Limited for marketing agricultural products. The platform is in line to the government’s program of endorsement of Internet platforms that use information technology in convectional industries in the country.

SkyPeople Fruit Juice, Inc is based in Florida and wholly owns Pacific Industry Holding Group Co., Ltd from Vanuatu and SkyPeople Juice International Holding from Hong Kong. The companies are involved in the production of fruit beverages, juice concentrates, and other products related to fruits.

Ticker SPU
Market Cap $11.91M
EPS (ttm) -$0.37
Shares Outstanding 4.05M
Shares Float 1.54M
Float Short 12.30%
Short Ratio 3.65
Performance (Quarter) -56.12%
Performance (Year) 17.60%
Performance (YTD) -55.45%
Beta 3.17
Average Volume 52.0K
Price $2.94
Volume 2,244,165
Target Price $4

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

 

Author: Monica Gray

Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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