ChinaNet Scores $4.8 Million Investment, Stock Up 3%
The stock in ChinaNet Online Holdings Inc. (Nasdaq: CNET) was trading up 3 percent Monday morning, at $1.34 per American depositary share, after the company announced it will receive $4.8 million from certain investors.
The Beijing-based company, which provides online advertising, marketing and data analysis, said in a statement today that it has struck a deal to sell 3.2 million shares of its common stock at the price of $1.49 apiece.
Handong Cheng, the chairman, president and chief executive officer of ChinaNet, said in the statement that the private placement will help the company's expansion overseas.
"By expanding into international markets we will effectively mitigate the current risks of macroeconomic uncertainties in China," Cheng added.
In pre-market trading, shares in ChinaNet soared 14 percent before leveling off intraday.
The company has not disclosed the investors on the deal.
In its latest financial report, ChinaNet disclosed losses of $1.1 million, or 7 cents per share, in the first quarter, compared with a loss of $600,000, or 4 cents per share, a year ago. Revenue was $8.6 million, up nearly 4 percent year-over-year. Previously, the company announced that was shifting away from developing blockchain services.
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