SoPa shall have the right, but not the obligation, to sell to Strattners up to $40,000,000 of its common stock.
NEW YORK, October 12, 2023 (ACN Newswire): Society Pass Inc. (Nasdaq: SOPA) (“SoPa” or the “Company”), Southeast Asia’s (SEA) next generation data-driven, loyalty, fintech, and e-commerce ecosystem, announced that it entered into a structured financing agreement for an equity line of credit with Strattners FZCO (“Strattners”) to efficiently access capital.
SoPa shall have the right, but not the obligation, to sell to Strattners up to $40,000,000 of SoPa’s common stock at SoPa’s request over the next 36 months, subject to certain limitations. For instance, the amount that may be sold under the agreement will be subject to Instruction I.B.6 to Form S-3, which is referred to as the “baby shelf rules”. When the company’s public float is less than $75,000,000, it may not sell more than the equivalent of one-third of its public float during any twelve consecutive months pursuant to the baby shelf rules. The shares of the company’s common stock will be issued at a 6% discount to the lowest volume-weighted average price during the three trading days following the date of the company’s request.
Raynauld Liang, CEO of SoPa, explained, “By raising this capital from Strattners without paying large commissions and fees, we will generate shareholder value by efficiently deploying such capital into our operating subsidiaries, such as our spinout candidates, Thoughtful Media Group Inc. and NusaTrip Inc.” Mr. Liang continued, “This financing strategy also allows us to opportunistically invest in acquisitions as well as bolster our working capital and shall be used judiciously when market conditions for our common stock are favourable.”
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