China Finance Online Co. (JRJC) is down 38.61% in the current market trading session at the price of $5.00 after the announcement of a private placement of ordinary shares and warrants.
Announcement of Private Placement of Ordinary Shares and Warrants
On 16th August 2021, JRJC declared that it has entered into a securities purchase agreement with an authorized investor for a private placement of the company’s ordinary shares. Under the agreement, the firm will issue 5,743,000 ordinary shares for an aggregate purchase price of $773,700. The purchase price represents a 20% discount to the closing trading price of the company’s ADS on Nasdaq on 6th August 2021. Each ADS represents 50 ordinary shares of the company. The deal is subject to customary closing conditions and the closing is expected to take place soon.
JRJC Announced Receipt of Nasdaq Delisting Notice
On 13th August 2021, JRJC disclosed that it had received a notice on 11th August 2021 from the Nasdaq Stock Market LLC. The notice stated that the company had not been able to provide a satisfactory definitive plan to regain compliance with the $10 million stockholders’ equity requirement under Nasdaq Listing Rule 5450(b). As of 31st December 2020, the company’s shareholders’ equity was approximately $4.6 million.
JRJC Announced Management Changes
On 25th May 2021, JRJC published some changes in its board of directors and senior management. Mr. Zhiwei Zhao has resigned from his position as the Chief Executive Officer of the Company. Dr. Z. James Chen has been appointed as the CEO, effective from 24th May 2021. Mr. Zhao continues to serve as a director and the Chairman of the Board. Concurrently, with the appointment of the CEO, Dr. Chen became their executive director. Additionally, Ms. Ying Zhu was appointed as the Chief Financial Officer of the firm effective from 24th May 2021. Ms. Zhu has served as their Acting Chief Financial Officer since December 2019.
Fourth Quarter and Full Year 2020 Financial Results
On 17th May 2021, JRJC published its unaudited financial results for the fourth quarter and full-year ended 31st December 2020. Net revenues increased 12.3% year-over-year to $9.8 million in the fourth quarter of 2020. Net loss attributable to China Finance Online was $5.6 million in Q4 2020. A net loss of $3.4 million was recorded in the fourth quarter of 2019. Net revenues increased by 12.7% to $40.0 million for the full year 2020. Net loss attributable to China Finance Online was $10.6 million for the full year 2020. A net loss of $11.3 million was reported for the year 2019.
