SINGAPORE - Caravelle International Group (NASDAQ:CACO), a company specializing in ocean technology, has completed the initial tranche of a private placement, securing $1.5 million from two institutional investors on January 5, 2024. The private placement could reach up to $6.8 million, with the first tranche totaling $3.3 million, of which the remaining $1.8 million is contingent upon the fulfillment of certain conditions post-closing.
The investment is structured as a Senior Secured Convertible Promissory Note with an 18-month term and is convertible into ordinary shares of the company at a starting price of $1.00 per share, subject to adjustments. Investors also received five-year warrants covering 50% of their investment amount, with the same initial exercise price.
The net proceeds from this financing, after accounting for the placement agent's fees and other expenses, were approximately $1 million. Caravelle has stated that these funds will be directed towards general working capital needs.
Maxim Group LLC served as the sole placement agent for this transaction. Additionally, Caravelle has committed to filing a registration statement for the ordinary shares that may be issued upon conversion of the Note and exercise of the warrants. Future tranches of funding, up to the aggregate amount of $6.8 million, may occur by mutual agreement between the investors and Caravelle, with additional warrants provided to investors under similar terms.
The announcement of this private placement does not constitute an offer to sell or a solicitation of an offer to buy any securities, and there will be no sale of these securities in any jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of that jurisdiction.
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