TDH Holdings Inc. (PETZ), a company engaged in the production and sales of pet foods, has seen an increase of 9.38% in the premarket trading session. As a result, PETZ stock was trading at $1.40 when last checked. The increase has come after the company announced to close its registered direct offering. On Thursday, PETZ stock closed the day at $1.28 after shrinking some 30.43%.
PETZ closed the registered direct offering
On Thursday, PETZ announced that it closed its previously announced registered direct offering. The offering was placed with certain investors. The company said that it raised approximately $9.1 million from the gross proceeds from the sale of 10,000,000 common shares. The price was set at $0.89 per share. The warrants had a price of $0.01 to purchase about 20,000,000 common shares. That was before deducting placement agent fees and other standard offering expenses. The warrants were exercisable at the rate of $2.06 per share. The company said that it planned to use the proceeds on strategic acquisitions and investment in complementary businesses from this offering. Boustead Securities, LLC served as the exclusive placement agent with regards to the offering.
Fiscal 2021 financial results
On 26th April, PETZ reported the annual financial results for the second fiscal year 2021, which ended 31st December 2020. According to the details, the company generated $0.82 million in terms of revenue during the fiscal year 2020. During fiscal 2019, it generated $12.65 million in terms of revenue. The gross loss bore by the company during the period stood at $0.04 million, while during fiscal 2019; it stood at $1.52 million. The company suffered a loss of $1.93 million from operations. During fiscal 2019, the loss from operations stood at $6.96 million. The net loss attributable to common shareholders stood at $0.87 million during the period. During fiscal 2019, the net loss attributable to common shareholders stood at $8.63 million. The net loss per basic and diluted share during fiscal 2020 stood at $0.02. During fiscal 2019, the net loss per basic and diluted share was $0.41. On 31st December 2020, the company had cash and cash equivalents of $6.56 million. The total assets in possession of the company stood at $18.45 million, while the total liabilities were $19.34 million.
Expectations from PETZ?
Stats don’t seem to be on the side of PETZ, with the stock declining some 34% during the last one week and 53% during the last half-year. Analysts estimate that the EPS of PETZ stock could grow by more than 95% during the current year, based on stability in businesses around the globe after mitigation in effects of the pandemic. So, potential investors should keep a close eye on PETZ stock.
