Molecular Data Inc [NASDAQ:MKD] was a top performer yesterday after it bounced off a key support level. This is an indicator that investors expect the stock to hold up above this level in the near-term. MKD recently announced that it will be entering into a definitive agreement with Cayman Islands’ exempt YA II PN, Ltd., that is under the management of Yorkville Advisor Global, LP.
In the agreement, Molecular Data is set to issue and sell convertible debentures worth an aggregate principal of US$5.0 million in a private placement that will be subject to customary closing conditions.
Issuing and selling of the convertible debentures will be on instalments that will adhere to the following schedule:
- Upon signing of the definitive agreement, there will be a sale of convertible debentures worth US$3.0 million.
- Upon the filing of a registration statement with the SEC (Securities and Exchange Commission) convertibles debentures worth US$1.0 million will be issues and bought
- When the SEC declares the registration statement effective, convertible debentures worth US$1.0 million to be issued and bought.
The convertible debentures issued attract an annual interest rate of 5%. They are set to mature within one year after the issuance date as long as they are not redeemed or converted based on the terms set before the maturity date.
The purchasing party has the right to convert the convertible debentures in part or entirely at any time, based on the terms of the agreement and upon compliance with those terms. If the purchaser converts the convertible debentures, the selling company will have to deliver to the purchaser American depository shares of the company. Projections show that the initial conversion price will either be the lower of US$1.30 for every ADS unit or 88% of the benchmark price of the Company’s ADSs.
About Molecular Data Inc
Molecular Data Inc., is an international technology-driven company that forms part of China’s chemical industry. It helps connect companies in the chemical value chain using integrated and updated solutions. Among the services, the company provides in this industry include financial solutions, warehousing and logistics, e-commerce, and SaaS suite to help facilitate operations within the chemical industry. The e-commerce solutions that the company offers work on an integrated knowledge engine as well as artificial intelligence (AI) capabilities and mainly offer those services on the company’s online platform. The online platform allows for scaling these solutions to unlimited levels. This platform consists of Moku Data WeChat, molbase.cn, molbase.com, and Chemical Community App among other supporting platforms.