Meten Merges With EdtechX
Meten International Education Group, seeking to trade publicly in the U.S., has merged with EdtechX Holdings Acquisition Corp. to form Meten EdtechX Education Group Ltd. (Nasdaq: METX).
The Shenzhen-based company has updated its prospectus with the U.S. SEC Friday, registering the resale of 51 million ordinary shares and 6.26 million warrants. The warrants are expected to be quoted on the Nasdaq Capital Market under the same ticker symbol as redeemable warrants under "METXW."
In addition, Meten is offering 250,000 units (including the underlying 250,000 warrants and 250,000 ordinary shares) upon the exercise of the warrants.
If all of the outstanding warrants are exercised in full, the company will receive aggregate net proceeds of $146.1 million. An additional $3 million could be received from the exercise of the unit purchase options and $2.9 million from the exercise of the warrants included in the units issued thereby.
Meten provides English language training (ELT) in China, with branches of general ELT, test-oriented ELT, and after-school language training for adults and juniors. The company operates both offline and online services, as well as overseas training services, it said.
As of March 31, 2020, Meten EdtechX network was comprised of 128 self-operated learning centers covering 28 cities in 15 provinces, autonomous regions and municipalities in China, and 17 franchised learning centers, according to the filing.
Chardan Capital Markets LLC secured the reverse merger in late March. At the time, George Kaufman, partner and head of investment banking at Chardan, said in a statement, "EdtechX was the first SPAC to focus on educational technology, a sector that has been growing quickly for years and has recently gained attention as a key investment theme driven by global events."
For 2019, Meten reported $208 million in revenues, up 2% year-over-year. It also reported $32.3 million in losses in contrast to income of $8 million for 2018.
Meten noted that its business has been negatively impacted by the Covid-19 outbreak, as its offline learning centers were closed. The company recognized 14.7 million yuan of impairment losses for the three months ended March 31, 2020, and expects to recognize additional impairment in the second quarter of 2020, according to its filing.
Meten International had initially publicly applied to raise up to $100 million on the New York Stock Exchange. It later withdrew its request.
BeiGene Highlights Q2 Drug Approvals, Product Pipeline
AstraZeneca to Take Covid-19 Vaccine to China With Kangtai Bio
S&P 500 Bulls Meet Unemployment Claims
ReneSola Predicts Sunny Revenue Forecast After Dreary First Quarter
Jacobio Pharmaceuticals Aims to Raise $400 Million in Hong Kong
MDJM Gets Warning From Nasdaq for Failing the Minimum Public Holders Requirement