International Group Company Huadi Ltd. (NASD: HUDI), which closed an equity offering on Thursday, has fell -3.35% to $8.36 in current market price.
HUDI has completed which offer?
The previously announced registered direct offering by Huadi International (HUDI) has been closed with the participation of two institutional investors. Before subtracting placement agent fees and other anticipated offering costs from the total proceeds, Haudi International raised around US$25 million.
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One million common shares will be sold in the offering in a registered direct offering at a price of $25 per common share. The net revenues will be used by HUDI for general working capital. For this offering, Univest Securities, LLC served as the sole placement agent.
HUDI unveiled a strategy:
Recently, Huadi International revealed its strategic intention to penetrate the renewable energy sector. HUDI aims to invest in and build a local manufacturing base for anode materials, which are essential to the development of clean energy batteries and storage technologies, in Sichuan province, China. Discussions have already begun with the local authorities there.
During a number of virtual conferences on the development of sustainable energy, the management of HUDI and local officials held discussions. The prospective investment, product line, use of technology, projected operating size, and effectiveness of the clean energy effort put out by HUDI were discussed. Following a review and confirmation of the Company’s strategic planning for the new energy company, local officials have organized field trips to carry out due diligence. The strategic plan of HUDI is to promote local economic growth in Sichuan and enhance environmental sustainability.
The administration of HUDI has a wealth of expertise in disciplines relating to new energy. With local government backing, HUDI sees significant market prospects to create new energy through a variety of means, such as subsidies, land grants, and tax breaks. Due to its purpose to increase profitability via innovation, this prompted HUDI to develop a new strategic plan. The firm also intends to focus on laying the groundwork for the transition to clean energy.
How will HUDI carry out its strategy moving forward?
A new energy strategy plan was agreed by HUDI and the Sichuan Local Government. The local authorities recognized HUDI’s capacity to quicken the domestic battery supply chain and satisfy rising demand from the markets for stationary grid storage and electric vehicles. Huadi International (HUDI) has extensive expertise in the industrial sector and has developed reliable upstream business relationships for the acquisition of raw materials.