Following the announcement of a significant equity move, shares of Cheetah Net Supply Chain Service Inc. (NASDAQ: CTNT) experienced a robust rally. During the regular trading session, the stock rose by 7.60%, closing at $7.50, and the momentum continued into the post-market session, with CTNT shares surging an additional 10.00% to reach $8.25.
Details Of The Equity Offering
Following a successful follow-on offering that resulted in the issuance of 13,210,000 shares of Class A common stock, Cheetah Net (CTNT) stated. At a price of $0.62 per share, the gross proceeds, before placement agency fees and other related costs, were $8.19 million. In this offering, the Company issued all of the shares. The net proceeds from this sale will be used to improve the company’s logistics and storage services as well as to support working capital.
Recent Performance And Strategic Acquisitions
In recent business developments, Cheetah Net disclosed its financial results, highlighting the acquisition of Edward Transit Express Group, Inc. (“Edward”) in February 2024. Edward, a California-based carrier specializing in ocean and air transportation, was acquired for $0.3 million in cash and the issuance of 1,272,329 shares of Class A common stock.
Edward provides warehousing and logistics services to third-party parallel-import vehicle wholesalers and others, complementing Cheetah Net’s financial services business initiated in October 2022. The goal of Cheetah Net’s acquisition strategy is to broaden its offerings beyond the parallel-import car industry and develop into a one-stop shop for financing and services related to international commerce for small and medium-sized businesses.
In the first quarter of 2024, Cheetah Net said that, following the purchase, it had generated $60,000 in income from non-vehicle-related wholesalers through storage and logistics. The company had $0.9 million in cash on hand as of March 31, 2024, and its working capital was estimated to be worth $6.3 million. This amount is calculated by deducting $1.5 million from current obligations, which comprise the current part of long-term debt and $0.8 million in loans outstanding, from $7.8 million in current assets.
