YANGZHOU, China, Dec. 28,
2023 /PRNewswire/ -- Meihua International Medical
Technologies Co., Ltd. ("MHUA" or the "Company") (NASDAQ: MHUA), a
reputable manufacturer and provider of Class I, II and III
disposable medical devices with operating subsidiaries in
China, announced today that it has
entered into a securities purchase agreement with institutional
investors (the "Investors") to issue and sell an initial
$6 million tranche in the offering of
up to $50.5 million of its
securities.
Under the terms of the securities purchase agreement, the
Company agreed to issue 7% Original Issue Discount Senior
Convertible Promissory Notes (the "Notes") to the Investors, with
$6 million in aggregate principal
amount of Notes being issued in this initial tranche in a
registered direct offering (the "Initial Notes"). The Notes, which
do not bear interest unless they fall into default, are
automatically and optionally redeemable upon the occurrence of
certain events specified in the Notes, will mature 364-days after
issuance and will be convertible into the Company's ordinary shares
at an initial conversion price equal to $2.738 per share, subject to 4.99% beneficial
ownership limitations and which interest rate and price are subject
to adjustment as further specified in the Notes. The Notes will be
repayable in cash upon maturity, if the Notes haven't been fully
converted prior to such time. The offering is subject to customary
closing conditions. The Investors will also receive five-year
ordinary share purchase warrants exercisable for a number of
ordinary shares equal to 50% of the number obtained from dividing
each Note's principal amount by the VWAP of the ordinary shares on
the date of such securities purchase agreement, at an initial
exercise price equal to $2.9869 per
share, subject to adjustment and 4.99% beneficial ownership
limitations. The warrants issued in connection with the Initial
Notes will be issued in a concurrent private placement.
Maxim Group LLC is acting as the sole placement agent for each
of the offerings.
The Initial Notes and the ordinary shares issuable upon
conversion of the Initial Notes are being sold pursuant to a shelf
registration statement on Form F-3 (File No. 333-274194), initially
filed with the U.S. Securities and Exchange Commission (the "SEC")
on August 24, 2023, amended on
September 25, 2023 and September 29, 2023 and declared effective on
September 29, 2023. Such securities
are being offered only by means of a prospectus supplement to such
registration statement. Such prospectus supplement and accompanying
prospectus relating to and describing the terms of the registered
direct offering will be filed with the SEC. When available, copies
of such prospectus supplement and accompanying prospectus may be
obtained at the SEC's website www.sec.gov or by contacting Maxim
Group LLC, 300 Park Avenue, 16th Floor, New York, NY 10022, at 212-895-3745.
Subject to the satisfaction of certain conditions, including an
Investor holding an outstanding Note with a principal amount below
$500,000, additional tranches of
funding may occur, for up to an aggregate amount of up to
$50,500,000. In conjunction with each
additional closing, the Investor will be entitled to receive an
additional warrant exercisable for ordinary shares equal to 50% of
the number obtained from dividing the principal amount of the Note
by the VWAP on the trading day immediately prior to such subsequent
closing. In addition, the Note holders will have the right to
participate in the Company's subsequent financings and offerings,
subject to certain limitations. The Company has also agreed,
pursuant to a registration rights agreement with the Investors, to
within 60 days of the initial closing, file a registration
statement registering (i) the resale of the ordinary shares
issuable upon the exercise of the warrants issued in connection
with the Initial Notes, and (ii) the issuance of all subsequent
issuances of Notes, accompanying warrants and ordinary shares
underlying such Notes and warrants.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any state or other jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to the registration or qualification under the securities laws of
any such state or other jurisdiction.
The Company plans to use the proceeds from this financing for
general working capital purposes.
About Meihua International Medical Technologies Co.,
Ltd.
Meihua International Medical Technologies is a reputable
manufacturer and provider of Class I, II and III disposable medical
devices with operating subsidiaries in China. The Company manufactures and sells
Class I disposable medical devices, such as HDPE bottles for
tablets and LDPE bottles for eye drops, throat strips, and anal
bags, and Class II and III disposable medical devices, such as
disposable identification bracelets, gynecological examination
kits, inspection kits, surgical kits, medical brushes, medical
dressing, medical catheters, uterine tissue suction tables, virus
sampling tubes, disposable infusion pumps, electronic pumps and
anesthesia puncture kits, among other products which are sold under
Meihua's own brands and are also sourced and distributed from other
manufacturers. The Company has received an international "CE"
certification and ISO 13485 system certification and has also
registered with the FDA (registration number: 3006554788) for over
20 Class I products. The Company has served hospitals, pharmacies,
medical institutions and medical equipment companies for more than
30 years, providing over 1,000 types of products for domestic
sales, as well as over 120 products which are exported to more than
30 countries internationally across Europe, North
America, South America,
Asia, Africa and Oceania. For more information,
please visit www.meihuamed.com.
Forward-Looking Statements
This press release contains forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. When the Company uses words such as
"may," "will," "intend," "should," "believe," "expect,"
"anticipate," "project," "estimate" or similar expressions that do
not relate solely to historical matters, it is making
forward-looking statements. Forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties that may cause the actual results to differ
materially from the Company's expectations discussed in the
forward-looking statements. These statements are subject to
uncertainties and risks including, but not limited to, the
following: the Company's ability to achieve its goals and
strategies, and its ability to raise funds pursuant to such
securities purchase agreement described above, the Company's future
business development and plans of future business development,
including its ability to successfully develop robotic assisted
surgery systems and obtain licensure and certification for such
systems, financial conditions and results of operations, product
and service demand and acceptance, reputation and brand, the impact
of competition and pricing, changes in technology, government
regulations, fluctuations in general economic and business
conditions in China, and
assumptions underlying or related to any of the foregoing and other
risks contained in reports filed by the Company with the U.S.
Securities and Exchange Commission ("SEC"). For these reasons,
among others, investors are cautioned not to place undue reliance
upon any forward-looking statements in this press release.
Additional factors are discussed in the Company's filings with the
SEC, including under the section entitled "Risk Factors" in its
annual report on Form 20-F, as amended, filed with the SEC on
August 29, 2023, as well as its
current reports on Form 6-K and other filings, all of which are
available for review at www.sec.gov. The Company undertakes no
obligation to publicly revise these forward-looking statements to
reflect events or circumstances that arise after the date
hereof.
For more information, please contact:
Janice Wang
Wealth Financial Services LLC
Phone:
+86 13811768599
+1 628 283 9214
Email: services@wealthfsllc.com
View original
content:https://www.prnewswire.com/news-releases/meihua-international-medical-technologies-co-ltd-announces-initial-6-million-tranche-of-potential-50-5-million-maximum-offering-302023235.html
SOURCE Meihua International Medical Technologies Co., Ltd.
