BETHESDA, MD - HWH International Inc. (NASDAQ:HWH), a distributor of pharmaceutical and medical products, announced today the completion of its public offering, which raised approximately $1.76 million in gross proceeds. The offering, which closed on Monday, involved the sale of 3,162,500 shares of common stock and 1,250,000 pre-funded warrants. The company, currently valued at $12.32 million, has seen its stock decline by 95% over the past year, according to InvestingPro data.
The shares were priced at $0.40 each, while the pre-funded warrants, immediately exercisable, were offered at $0.3999 with an exercise price of $0.0001 per share. The capital raised is before accounting for placement agent fees and other related expenses. Despite showing revenue growth of 44.55% in the last twelve months, the company's financial health score remains weak, with negative EBITDA of $1.59 million.
D. Boral (OTC:BOALY) Capital LLC served as the exclusive placement agent for the transaction. Under the terms of the Placement Agency Agreement, HWH International paid a cash fee equal to 7.5% of the gross offering proceeds, a non-accountable expense allowance of 1.0%, and up to $75,000 for legal and out-of-pocket expenses.
The offering was made under the company's Form S-1 registration statement, initially filed with the SEC on October 10, 2024, and subsequently amended. It was declared effective on December 19, 2024, with the final prospectus filed on January 6, 2025.
HWH International, formerly known as Alset Capital Acquisition Corp., is based in Bethesda, Maryland, and operates in the wholesale drug and sundries sector. The company's fiscal year ends on December 31, and it is incorporated in the state of Delaware.
In other recent news, HWH International has made several strategic moves to bolster its financial standing. The company announced the pricing of its public offering, expected to generate approximately $1.76 million in gross proceeds. The offering includes 3,162,500 shares of common stock and 1,250,000 pre-funded warrants to purchase shares of common stock.
In addition, HWH International has entered into a stock purchase agreement with Alset Inc., its majority shareholder, resulting in the issuance of new shares, enhancing stockholders' equity by $3 million.
HWH International has also reported significant growth in its joint venture, Hapi Travel, with revenues exceeding $18 million in the first three quarters of 2024. This marks a revenue growth of 44.55% over the last twelve months. Furthermore, the company has converted $3,801,759 in debt into equity by issuing new shares.
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