Armlogi Holding Corp. secures $5 million in funding under a Standby Equity Purchase Agreement, enhancing its growth initiatives.
Quiver AI Summary
Armlogi Holding Corp., a U.S.-based warehousing and logistics provider, announced the closing of the $5 million second tranche of a Pre-Paid Advance as part of a Standby Equity Purchase Agreement (SEPA) with YA II PN, Ltd. This follows an earlier announcement regarding the SEPA, which allows Armlogi to request up to $50 million in common stock purchases from the investor until December 2026. The total Pre-Paid Advance is $21 million, structured in three tranches, of which the company has received two so far. Armlogi's CEO, Aidy Chou, noted that this funding milestone will strengthen the company's financial position and support its growth initiatives in expanding its supply-chain solutions. Armlogi serves cross-border e-commerce merchants and has ten warehouses covering over three million square feet for effective inventory management.
Potential Positives
- The successful closing of the $5 million second tranche strengthens Armlogi's financial position, providing essential capital for growth initiatives.
- The total availability of up to $50 million under the Standby Equity Purchase Agreement (SEPA) indicates robust investor confidence and financial flexibility.
- This financing enables Armlogi to enhance its supply-chain solutions platform, potentially attracting more clients in the competitive logistics market.
- The company's expansion efforts are supported by existing infrastructure, with ten warehouses covering over three million square feet, positioning it well to serve cross-border e-commerce merchants.
Potential Negatives
- The company relies on external funding through a Standby Equity Purchase Agreement (SEPA), which may indicate potential liquidity issues or financial instability.
- The use of convertible promissory notes may dilute existing shareholders' equity if converted into shares, potentially leading to shareholder dissatisfaction.
- Forward-looking statements in the release highlight uncertainties in future performance, suggesting potential risks to achieving projected growth and financial success.
FAQ
What is the recent financial milestone for Armlogi Holding Corp.?
Armlogi has closed on the $5 million second tranche of a Pre-Paid Advance under a Standby Equity Purchase Agreement.
What is the total amount Armlogi can raise through the SEPA?
Armlogi can raise up to $50 million of common stock through the Standby Equity Purchase Agreement until December 1, 2026.
How does the funding benefit Armlogi's operations?
This funding strengthens Armlogi's financial position and provides flexible capital to support strategic growth initiatives and enhance supply-chain solutions.
What services does Armlogi offer to cross-border e-commerce merchants?
Armlogi provides warehousing and logistics services, helping merchants establish overseas warehouses in the U.S. market.
Where can I find more information about Armlogi Holding Corp.?
For more information, visit Armlogi's website at .
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
Full Release
WALNUT, CA, Dec. 20, 2024 (GLOBE NEWSWIRE) -- Armlogi Holding Corp. ("Armlogi" or the "Company") (Nasdaq: BTOC), a U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment, today announced that it has closed on the $5 million second tranche of the Pre-Paid Advance (as defined below) pursuant to a Standby Equity Purchase Agreement (the "SEPA") the Company entered into with YA II PN, Ltd. ("YA"), a fund managed by Yorkville Advisors Global, LP.
As previously announced on November 25, 2024, Armlogi entered into the SEPA, where, pursuant to the terms of the SEPA, Armlogi will have the right, from time to time, until December 1, 2026, to require the Investor to purchase up to $50 million of shares of common stock of the Company, subject to certain limitations and conditions set forth in the SEPA, by delivering written notice to YA (an "Advance Notice"). Pursuant to the SEPA, YA will advance to the Company, subject to the satisfaction of certain conditions as set forth therein, the principal amount of $21 million (the "Pre-Paid Advance"), which will be evidenced by convertible promissory notes (the "Promissory Notes", together with the "SEPA", the "Offering") in three tranches. The Company has now received two tranches of the Pre-Paid Advance of $5 million each.
"This second tranche closing represents another important milestone in strengthening Armlogi's financial position and advancing our growth initiatives," said Aidy Chou, Chairman and Chief Executive Officer of Armlogi. "The continued support from Yorkville Advisors through our SEPA arrangement provides us with flexible capital to execute our strategic plans and enhance our comprehensive supply-chain solutions platform. We remain focused on delivering value to our customers and shareholders as we continue to expand our warehousing and logistics capabilities."
About Armlogi Holding Corp.
Armlogi Holding Corp., based in Walnut, CA, is a fast-growing U.S.-based warehousing and logistics service provider that offers a comprehensive package of supply-chain solutions relating to warehouse management and order fulfillment. The Company caters to cross-border e-commerce merchants looking to establish overseas warehouses in the U.S. market. With ten warehouses covering over three million square feet, the Company offers comprehensive one-stop warehousing and logistics services. The Company's warehouses are equipped with facilities and technology for handling and storing large and bulky items. For more information, please visit
.
Safe Harbor Statement
This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," or "hopes" or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us.
Company Contact:
info@armlogi.com
Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email:
matthew@strategic-ir.com
