NEW YORK (TheStreet) -- Shares of Kandi Technologies (KNDI) fell -6.8% to $17.82 Friday after the company announced a securities purchase agreement with some institutional investors for a registered direct placement of common stock at $17.20 per share for a total of $71 million.
Kandi will issue 4,127,908 shares to investors, along with warrants, to buy up to 743,024 shares at $21.50 a share. The warrants will have a term of 17 months after they are issued.
If investors exercise all options on shares and warrants, the gross proceeds of the offering would total $101 million.
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Separately, TheStreet Ratings team rates KANDI TECHNOLOGIES GROUP as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate KANDI TECHNOLOGIES GROUP (KNDI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: