Nova LifeStyle Inc. (NVFY) was up 6.58% after hours at $2.43 at the last check on Thursday. NVFY stock closed at $2.28 gaining 5.31% in the last trading session. NVFY stock traded in a price range of between $2.10 and $2.28. A total of 1.47 million shares of NVFY stock were traded, exceeding the daily average of 1.03 million shares during the previous 100 days. Nova LifeStyle stock has lost -34.67% in the last five days and -24.25 percent in the last month. Nova LifeStyle stock rose following a recent common stock offering.
What was that offering from NVFY?
Nova LifeStyle manufactures and distributes modern lifestyle furniture, including living room furniture, dining room furniture, cabinets, home office furniture, and bedroom furniture with a range of complementary accessories. Products offered by NVFY include Nova Brands and Diamond Sofa. With its urban contemporary styles, Nova LifeStyle offers high-quality products that incorporate comfort, style and function, appealing to middle and upper middle-class consumers across the globe, including in China, Europe, and the USA.
As part of a registered direct offering, Nova Lifestyle has concluded definitive agreements to sell 1,114,508 of its common shares to certain institutional investors.
- Nova LifeStyle will also issue unregistered warrants to investors in the private placement for up to 1,114,508 shares of common stock.
- NVFY common stock and warrants to purchase one share are sold for $2.80 in the combined purchase price.
- Exercise of the NVFY warrants will begin six months after issuance, and the warrants will expire five and a half years after issuance.
- A single placement agent, Dawson James Securities, Inc., represented NVFY in its issuance.
- Prior to commissions and expenses, the registered direct offering and concurrent private placement are expected to generate gross proceeds of approximately $3.1 million.
- Net proceeds from the offering will be used for working capital and general corporate purposes by NVFY.
Under normal circumstances, Nova LifeStyle was expecting the registered direct offering and concurrent private placement to close on or about July 27, 2021.
Other recent developments at Nova LifeStyle:
Diamond Sofa, a wholly owned subsidiary of Nova LifeStyle (NVFY), has successfully exhibited a new design line at the High Point Market furniture trade show from June 5th through 9th. NVFY’s marketing and sales staff has been active throughout the pandemic, and it has been meeting and speaking with loyal current and potential customers, such as Nebraska Furniture Mart, Regency Furniture, El Dorado Furniture, and Slumberland. Moreover, in the past few years, NVFY has transitioned to higher margin products, and has built up inventory consistently so it can fill orders on time that helped it stay competitive despite COVID-19 pandemic delays and increased freight costs.
