Senmiao Technology Ltd. (NASDAQ: AIHS) stock gained by 4.94% at last close while the AIHS stock price rises by 2.20% in the pre-market trading session. Senmiao, based in Chengdu, Sichuan Province, offers vehicle transaction and associated services, such as car sales, facilitation, and services for car purchase and financing, management, operating leasing, guarantee, and other vehicle transaction services. In addition, AIHS runs its own ride-hailing platform, which is focused primarily at the developing ride-hailing industry in Senmiao’s China operations.
What is happening?
AIHS released operation stats for its own online ride-hailing platform for the month of May 2021 on June 7, 2021. Between April 2021 and May 2021, the number of overall orders increased by nearly 20%, while the number of drivers completing trips via the platform (known as Active Drivers) increased by around 9%.
Over 8.4 million trips have been finished utilizing Senmiao’s online ride-hailing system since its introduction in Chengdu in October 2020, Changsha in December 2020, Neijiang in January 2021, and Guangzhou at the end of March 2021, including over 2.1 million journeys in May 2021. During five months ending May 31, 2021, the monthly average rate of growth of completed orders and Active Drivers was roughly 36 percent and 34 percent, respectively.
On May 14, 2021, AIHS reported that it has completed a registered direct offering of 5,531,916 shares of its common stock with selected institutional investors at a price of $1.175 per share for total proceeds of about $6.5 million. Furthermore, AIHS granted the Investors warrants to buy a total of 5,531,916 shares of common stock at a price of $1.05 per share. The warrants have a term of five years and can be exercised at any time on or after the date of issue.
After the offering, AIHS has about 55.4 million shares of common stock outstanding. The gross proceeds from the transaction will be used by Senmiao for working capital and other general purposes of AIHS.
The offering was handled by FT Global Capital, Inc., which served as the sole placement agent. In conjunction with the placement, Pryor Cashman LLP acted as counsel to AIHS and Schiff Hardin LLP acted as counsel to the placement agency.