Huachen AI Successfully Completes Over-Allotment Option
Huachen AI Parking Management Achieves Major Milestone
In an exciting announcement, Huachen AI Parking Management Technology Holding Co., Ltd (the "Company") (NASDAQ: HCAI) revealed that it has successfully completed the full exercise of an over-allotment option in connection with its initial public offering (IPO). This achievement took place on a recent date, enhancing the Company’s position in the smart parking solutions and equipment industry.
Details of the Over-Allotment Option Exercise
The underwriters of the IPO exercised their option to purchase an additional 225,000 ordinary shares at a public offering price of US$4.00 per share. This move resulted in an impressive additional gross proceeds of $900,000. With this over-allotment exercised, the total number of ordinary shares sold by Huachen AI during this public offering reached 1,725,000, bringing the gross proceeds to approximately US$6.9 million, before deducting any underwriter commissions and associated expenses.
Trading Commencement on Nasdaq
The ordinary shares began trading on the Nasdaq Capital Market after the initial offering date, significantly boosting the Company’s visibility and accessibility to investors. The ticker symbol for Huachen AI on Nasdaq is “HCAI,” marking a pivotal moment in its market journey.
Utilization of Proceeds from the Offering
Huachen AI has specific plans for utilizing the net proceeds obtained from the IPO. These funds will be primarily directed towards securing managerial and operational rights for a new parking lot. Additionally, the Company is focused on the development and enhancement of its Automatic Guided Vehicles (AGVs) and Robotic Guided Vehicles (RGVs), thereby advancing its technological capabilities.
Recruiting Specialized Talent
As part of its growth strategy, Huachen AI is also investing in the recruitment of specialized technical and operational personnel. This strategic hiring is essential to support the ongoing development of cutting-edge smart parking solutions that cater to the evolving needs of clients.
Role of Underwriters in the Offering
In this successful IPO process, Benjamin Securities, Inc. and D. Boral Capital LLC acted as the underwriters, ensuring that the offering reached its full potential. The involvement of experienced underwriters is crucial in the initial public offering landscape, particularly for companies like Huachen AI, which are striving to make significant impacts in their respective sectors.
Legal Counsel for the Offering
Huachen AI secured legal support from Ortoli Rosenstadt LLP as its U.S. securities counsel. Additionally, Sichenzia Ross Ference Carmel LLP provided counsel to the underwriters, creating a robust framework for compliance with regulatory standards throughout the offering process.
About Huachen AI Parking Management Technology Holding Co., Ltd
Huachen AI is based in the Cayman Islands and acts primarily as a holding company for its subsidiaries. It operates in the realm of smart parking solutions, providing innovative equipment and structural parts necessary for modern parking facilities. The Company’s operational efficiency is enhanced through its subsidiaries in China, which specialize in tailored parking solutions, helping businesses to maximize their available space.
Customized Parking Solutions
With a diverse range of products, Huachen AI focuses on various parking technologies, including smart cubic garage designs and efficient equipment manufacturing. Their offerings encompass a range of working principles to address various parking needs, such as lifting and shifting methods, vertical circulation, and multi-layer cycles. By offering comprehensive design, repair, and maintenance services, the Company ensures that its clients receive sustainable parking solutions.
Frequently Asked Questions
What recent milestone did Huachen AI achieve?
Huachen AI announced the full exercise of its underwriters’ over-allotment option, boosting their offering proceeds significantly.
How much did the Company raise from the over-allotment?
The over-allotment raised an additional gross amount of $900,000 for the Company.
What is the importance of the IPO for Huachen AI?
The IPO has allowed Huachen AI to enhance its visibility and access to capital, enabling further expansion and development in smart parking solutions.
Who were the underwriters for the Huachen AI offering?
Benjamin Securities, Inc. and D. Boral Capital LLC were the underwriters involved in the offering.
What are the future plans for the proceeds from the IPO?
Proceeds will be used for new parking lot operations, developing AGVs and RGVs, and recruiting specialized personnel.
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