Shares of AnPac Bio-Medical Science Co. Ltd. (Nasdaq: ANPC) were up 10.45% at $3.70 as of the most recent check in after-hours trading following the biotechnology company’s announcement of the creation of a new subsidiary.
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Why did ANPC create the subsidiary?
AnPac Bio-Medical (ANPC) revealed this week that on October 4, 2022, it would establish a wholly-owned subsidiary called Fresh2 Technology Inc in the State of Delaware. In order to launch its new offering of the business-to-business food industry and delivery platform for neighborhood restaurants and supermarkets, AnPac Bio-Medical established the new subsidiary. This was done in an effort to combine China’s food distribution strategies with the expanding Asian food market in North America.
For a larger clientele in local US markets, ANPC is committed to developing and supplying high-performance platforms and supply chains of food distribution systems. A new phase of expansion for ANPC will be sparked by the new business line, which will be crucial to its food business activities in North America.
Equity move by ANPC
ANPC also disclosed that it had secured an agreement with nine investors. Through a private placement, the investors would subscribe for and acquire 28,571,428 freshly issued Class A ordinary shares from ANPC. A total of $5 million will be spent on the private placement at a price of US$3.5 per ADS and US$0.175 per common share (1:20 ADS-to-share ratio).
In addition, the investors will get two unregistered warrants from ANPC for each Class A ordinary share acquired, totaling 57,142,856 warrants in all. The warrants have an exercise price of US$4.2 and are exercisable within two years of the date of issuance.
ANPC regained listing compliance
The Office of the General Counsel of The Nasdaq Stock Market LLC has informed AnPac Bio-Medical (ANPC) that the company has recovered comply with the statutory $1 per share bid price requirement of Listed Securities necessary for continuing listing as per Listing Rule 5450(a) (1). The Mandatory Panel Monitor, which was enforced by an earlier Hearings Panel’s judgment on June 9, 2022, will continue to apply to ANPC until June 9, 2023.
