The Nasdaq-listed company GBS Inc.
announced that it has closed its previously announced initial public offering
of 1,270,589 shares. The offering reflected a 20% upsizing at the time the
offering was priced. For each unit sold, the Company issued one share of its
common stock at a price of $17.00 per share.
This Series A Warrant entitles the holder to purchase one share of the Company’s common stock for an exercise price of $8.50 per share exercisable until the 5th anniversary of the issuance date. The Company has granted Series B Warrants to purchase shares of common stock at an exercise price of $17.00 per share exercisable until the 5th anniversary of the issuance date.
The Series B Warrant contain an exchange feature that will permit the holder to exchange the warrants for shares of common stock on a one-for-one basis starting at the earlier of 10 days after listing or once over $10 million has been traded in the company plc in the last three months.
Besides working capital, the Company intends to use the net proceeds of this offering to obtain regulatory approvals, market its products and establish a distribution network. Before subtracting underwriting discounts, commissions and offering expenses, the gross proceeds from this offering were approximately $21.6 million.
The underwriters also exercised their right
to over-allotment with respect to 190,588 Series A Warrants and 190,588 Series
The shares of the Company went on the market under the ticker symbol “GBS” on December 23, 2020. The Series A Warrants and the Series B Warrants cannot be traded.