Senmiao Technology Limited (NASDAQ:AIHS) Stock Falls 35% So Far This Year. Here is Why

Shares of Senmiao Technology Limited (NASDAQ:AIHS) continues to trend lower and now down 35% in 2021.

Market Stats

On Monday, AIHS stock  moved down 1.43% to $0.69 with more than 1.14 million, compared to its average volume of 1.80 million shares. The stock has moved within a range of $0.6717 – 0.7050 after opening the trade at $0.6930.

Announces $5 Million Private Placement

Senmiao Technology Limited (NASDAQ:AIHS), which is involved in the online ride-hailing industry in China, and also operates its own online ride-hailing platform, makes an announcement regarding inking a securities purchase agreement with certain institutional investors for a private placement of approximately $5 million of its Series A Convertible Preferred Stock.

This move is to initially acquire up to an aggregate number of shares of common stock of the company, which is equal to the number of shares of common stock to be issued upon conversion of the Preferred Shares at $0.68 per share. Purchase price of each Preferred share will be $1000 each.

Certain warrants will be issued to investors on the company’s behalf, to purchase up to an aggregate number of shares of common stock, which is equal to the number of shares of common stock to be issued upon conversion of the Series A Preferred Stock at the Initial Conversion Price. Warrants have a term of 5 years and can be exercised any time after 6 months of being issued at an exercise price of $0.82 per share. 

Net proceeds from the offering will be used to boost the company’s business plan, while also funding any extra working capital needs. The offering is set to close on 10 November 2021, after customary closing conditions are fulfilled.

Traders Corner

AIHS stock is trading above the 20-Day and 50-Day Moving averages of $0.68 and $0.65 respectively. However, the stock is trading below 200-Day moving average of $0.99. The stock is up 6% in the past 3-month.