Farmmi Announces Pricing of $1.0 Million Registered Direct Offering

Company Overview - Farmmi Inc is an agricultural products supplier, processor, and retailer established in 1998, specializing in edible mushrooms like Shiitake and Mu Er, as well as other agricultural products [4] - The company operates both online and offline sales channels [4] Financing Activities - Farmmi entered into a securities purchase agreement with institutional investors to purchase 3,433,167 ordinary shares in a registered direct offering [1] - In a concurrent private placement, the company agreed to issue and sell Series A warrants to purchase up to 3,433,167 ordinary shares [1] - The combined effective offering price for each ordinary share and accompanying Series A warrant is $0.30 [1] - Series A warrants are immediately exercisable, expire five years from issuance, and have an initial exercise price of $0.75 per share [1] - The gross proceeds from the offering are estimated to be approximately $1.0 million before deducting placement agent fees and other offering expenses [1] - The offering is expected to close on or about August 26, 2024, subject to customary closing conditions [2] Regulatory Information - The ordinary shares are being offered pursuant to a shelf registration statement on Form F-3 (File No. 333-280348), declared effective by the SEC on June 27, 2024 [2] - The Series A warrants and ordinary shares issuable upon exercise were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933 and Regulation D [2] - A prospectus supplement relating to the sales of ordinary shares will be filed with the SEC [3] Market Position - The company operates in the agricultural products sector, specifically focusing on edible mushrooms and related products [4] - Farmmi has established a presence in both online and offline retail channels, indicating a diversified sales strategy [4]