Why Senmiao Technology [NASDAQ: AIHS] Stock Is Crashing Today?

Senmiao Technology Limited [NASDAQ: AIHS] has seen the worst Monday as the firm’s share has plummeted 11.86% as it lost -0.21 at $1.56 during the trading session of Monday. The reason behind this low performance of the company is its registered direct offering.

Senmiao Technology Limited has disclosed that it has signed a securities purchase agreement with certain institutional investors. The firm is planning for the registered direct offering of a total of 5,072,465 shares of common stock at a price of $1.38 per share.

Shares of Senmiao Technology Limited [NASDAQ: AIHS] traded down 11.86% during the trading session of Monday. AIHS share price went from a low point around $0.26 to momentarily over $2.35 in the past 52 weeks, though shares have since dragged back to $1.56. AIHS market capitalization has stayed high, reaching $80.00 Million at the time of writing,

It is anticipated that the firm will generate a gross profit of $7.0 million from this offering. It includes the profit before subtracting the placement agent’s fees and other projected offering expenditures. The agents of the firm for this offering will be FT Global Capital, Inc.

As per the firm, the profit from this offering will be used by the company to extend its business, plus the acquisition of vehicles and expansion of its online ride-hailing platform. The shares are being tendered in accordance with the provisions of a valid shelf registration statement on Form S-3, as revised that was earlier submitted with the SEC. It was revised and proclaimed valid on April 15, 2019