Technology Stocks

Jupiter Wellness (NASDAQ: JUPW) Prices $32.5 Million Underwritten Public Offering of Warrants and Common Stock; Alibaba Group Holding (NYSE: BABA) Stocks are Hit from China Crackdown

Jupiter Wellness Inc (NASDAQ: JUPW) announced the pricing of an underwritten public offering of 11 million shares of common stock, as the par value of $0.001 per share to be allocated by the firm. More than 5.4 lakhs shares to be administered by specific selling stockholders of the firm and warranty to purchase up to 11 million shares of common stock, at a rate to the public of $2.79 per firm offering share/selling stockholder share and $0.01 per company warrant. 

Covering Over Allotments

Moreover, the company warrant will be exercisable upon issuance with the recreation price of $2.79 per share and will terminate on the fifth anniversary of the original issuance date. Therefore, before reducing underwriting discounts and commissions and calculated offering expenses, the entire proceeds from the offering are expected to be $32.5 million. 

Furthermore, the stockholders consented to the underwriters a 45-day choice to purchase the common shares, as it sold 15% shares in the base offering and company warrant. It sold these shares to fill the over-allotments, and raise the gross proceeds of 37.4 million if the over-allotments were filled.

Aegis Capital Corp was the sole book-runner of these offerings of warrants and common stock.

Looking Back into Business

China’s technology stocks are going downhill recently after concerns about the government cracking down on large technology companies. Alibaba Group Holding Ltd – ADR (NYSE: BABA) is also not indifferent to these regulations. Its 33% stake in Ant Group Co will also come under the government’s sight after regulators’ crackdown. As a result, it will halt the public offering of Ant, which was anticipated to be significant in history.

Ramond James analyst Aaron Kessler said most of the regulations would not affect Alibaba, but investors seem to be keen on the increasing regulatory focus. Despite the issue, Alibaba is managing to keep up its profits. It was seen on their June quarter earnings report. Alibaba is focusing on China’s lower-tier cities where it’s investing big money to grow the business.

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