China Ceramics Files to Raise an Additional $5 Million for Shares, Warrants
China Ceramics Co. Ltd. (Nasdaq: CCCL) his filed to raise an additional $5 million through the issuance of additional stock and warrants.
The Jinjiang-based company, which makes interior and exterior tiles for residential and commercial buildings, said in a filing this week that it seeks to raise new funds for general corporate purposes for its shares and underlying warrants. The shares and warrants will be separately issued but will be purchased together in the expected offering.
The filing came after CCCL raised approximately $1.06 million in December in a public offering of 1 million units to purchase up to 1 million shares of common stock and 500,000 warrants. The unit was priced at $1.27 and the 5-year warrants exercisable at $1.27 per share.
In April this year, CCCL announced a sharp decrease in sales “due to an unexpected slowdown in China’s real estate sector.”
In its report, CCCL said revenue in the six months through December reached just $20.8 million, 3.5 times less than CCCL generated in the second half of 2017. Net loss was $50.6 million, or $11.07 per share, compared with a loss of $12.4 million, or $3.66 per ADS, in the same period the prior year.
For the full last year, CCCL posted revenue of $75.4 million, down 38 percent from 2017. Net loss quadrupled year-over-year to $63.3 million, or $14.10 per share, it said.
The company said it has dropped prices of its products to bolster sales and expected challenges to persist.
CCCL has not announced the pricing of its new offering. On Thursday, the day after the filing, the stock of the company closed at 91 cents per American depositary share, down 1 percent.
Underwriting the deal is Dawson James Securities Inc.