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NEW YORK - Hitek Global Inc. (NASDAQ:HKIT) closed a registered direct offering of $3 million, the company announced in a press release Tuesday.
The China-based information technology consulting and solutions service provider sold 100 million Class A ordinary shares at $0.03 per share to institutional investors. Pre-funded warrants were offered as an alternative to shares.The capital raise comes as the company trades at a current market cap of just $1.17 million and faces significant headwinds, with revenue declining 47% to $1.81 million over the last twelve months. According to InvestingPro analysis, which offers comprehensive financial health scores and exclusive tips for investors, the stock’s RSI suggests it’s in oversold territory following a 44% decline over the past week.
Univest Securities, LLC served as the sole placement agent for the transaction.
The offering was conducted under a shelf registration statement on Form F-3 filed with the U.S. Securities and Exchange Commission and declared effective on May 29, 2024.
Hitek Global, headquartered in Xiamen, China, provides IT consulting and solutions to businesses across various industry sectors in China. The company operates two business lines: services to small and medium businesses, including Anti-Counterfeiting Tax Control System tax devices and services, and services to large businesses, consisting of hardware and software sales.
Univest Securities is a FINRA-registered broker-dealer firm based in New York. According to the press release, the firm has been registered with FINRA since 1994 and provides brokerage, investment banking, and wealth management services.
In other recent news, Hitek Global Inc. announced a registered direct offering involving the sale of 100 million Class A ordinary shares at $0.03 per share. The company has entered into securities purchase agreements with institutional investors for this offering. Hitek Global anticipates gross proceeds of approximately $3 million before accounting for placement agent fees and other offering expenses. The offering is scheduled to close around March 30, 2026, pending customary closing conditions. These developments highlight Hitek Global’s efforts to raise capital through equity offerings.
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