The Missfresh Ltd (NASDAQ: MF) stock price rallied 76.8%, adding to Friday’s 284.54% upsurge after the company announced a new share purchase agreement with some investors to raise funds for its business. The company also signed a deal to acquire another firm for US$12 million.
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The company’s share purchase agreement for financing saw it raise US$27 million from a group of investors who subscribed to purchase 5.4 billion Class B ordinary shares of the Company for the above amount. The shares bought equate to 88.1% of the Company’s total issued and outstanding shares.
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Investors cheered the announcement after the news was released on Thursday after the market close, as evidenced by the massive rally higher by MF stock on Friday. The upbeat investment sentiment remains intact today, as evidenced by the rally higher in Missfesh stock and the over 10.03 million MF shares that changed hands today.
Additionally, the shareholders who just acquired an 88.1% stake in Missfresh delegated all their voting rights to Mr Zheng Xu, the Chairman and CEO of Missfresh. The new shareholders may want to remain anonymous, which explains the delegation of their voting rights.
Missfresh also announced another agreement to acquire Mejoy Infinite Limited from its shareholder for a cash consideration of US$12 million. The acquisition will allow Missfresh to offer customised digital marketing solutions and services.
The acquisition is set to close within 45 business days after the satisfaction or waiver of closing conditions or at such other time as agreed in writing by the relevant parties. Mejoy Infinite Limited is a provider of digital marketing solutions headquartered in Hong Kong.
The company is dedicated to helping its clients deliver online marketing campaigns that engage their target customers and fuel the higher growth of its clients’ businesses.
Mr Zheng Xu, the Chairman and CEO of Missfresh, said: “We are excited to announce this acquisition and have Mejoy as part of our Company, and we believe this acquisition could take full advantage of our extensive market know-how in the online marketing and e-commerce industry.”
Missfresh stock price.
The Missfresh stock price rallied 76.77% to trade at $3.50, rising from Friday’s closing price of $1.98.
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