NEW YORK – Univest Securities, LLC announced Thursday the closing of a $15 million registered direct offering for its client Chijet Motor Company, Inc. (NASDAQ:CJET), an automobile company focused on electric vehicles and traditional-fuel vehicles. According to InvestingPro data, the company faces significant financial challenges with a weak financial health score of 1.19 and a market capitalization of just $3.19 million.
Under the securities purchase agreement, Chijet sold 100,000,000 Class A ordinary shares at $0.15 per share to certain investors. The company also offered pre-funded warrants at the same price less the exercise price of $0.003 per share. This offering comes as the stock has declined over 90% in the past year, with InvestingPro analysis showing concerning metrics including negative gross margins of -478% and annual revenue of just $4.11 million.
Univest Securities acted as the sole placement agent for the transaction, which was conducted pursuant to a shelf registration statement previously filed with the U.S. Securities and Exchange Commission and declared effective on August 16, 2024.
Chijet Motor Company develops, manufactures, sells, and services both traditional fuel vehicles and new energy vehicles (NEVs). The company operates a vehicle production base in Jilin, China, and is constructing a factory in Yantai, China, which will be dedicated to NEV production upon completion. InvestingPro data reveals the company is quickly burning through cash with a current ratio of 0.19, indicating potential liquidity concerns. InvestingPro subscribers have access to 13 additional key insights about CJET’s financial position.
The offering was made through a prospectus supplement and accompanying prospectus filed with the SEC, according to the press release statement.
Univest Securities, registered with FINRA since 1994, provides financial services including brokerage, sales and trading, investment banking, and wealth management. The firm has raised over $1.5 billion in capital for issuers globally since 2019.
In other recent news, Chijet Motor Company, Inc. announced a significant financial development with a Memorandum of Understanding for a private placement offering of up to $1 billion. This represents a substantial increase from a previously announced $20 million private placement, marking a 50-fold expansion in committed capital. The funds are intended to support Chijet’s strategic transformation into the digital asset custody and storage market. Additionally, the company has entered into a definitive agreement to raise approximately $15 million through a registered direct offering by selling 100 million Class A ordinary shares. This transaction is expected to close around October 2, 2025, pending customary conditions. In a strategic move, Chijet appointed Jason Miller as Chief Operating Officer to guide its digital currency integration, focusing on incorporating cryptocurrencies like Bitcoin and Ethereum into its financial strategy. Miller’s extensive experience in blockchain and emerging technologies is expected to bolster Chijet’s transition. These recent developments highlight Chijet’s ongoing efforts to expand its financial and strategic horizons.
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