Antelope Enterprise (AEHL) Registration Filing summary

Offering details and pricing

• Three standby equity subscription agreements allow for the sale of up to 30,000,000 Class A Ordinary Shares, each at the lesser of the 3-day average closing price or $1.12 per share, with a maximum aggregate of $33.6 million over up to 36 months.

• An additional 1,300,000 Class A Ordinary Shares are issuable upon exercise of outstanding warrants at $1.10 per share, potentially raising $1.43 million.

• The agreements with Dafu, Baisheng, and Hongfeng International Group Ltd. are not with related parties and can be terminated by mutual consent or upon full subscription.

• The company will not receive proceeds from the resale of shares by selling shareholders but will receive proceeds from warrant exercises and direct share sales under the subscription agreements.

Company overview and business model

• Operates as a British Virgin Islands holding company with primary operations in China, focusing on livestream e-commerce, business management, and information systems consulting.

• Livestreaming e-commerce, conducted through a 51% subsidiary, accounted for 98.1% of 2023 revenue.

• Business management and consulting contributed 1.4% of 2023 revenue; a new energy supply business in Texas is planned for Q3 2024.

• The company divested its ceramic tile business in April 2023 due to market headwinds.

Financial performance and metrics

• 2023 net sales were RMB 510.5 million, up from RMB 286.3 million in 2022, driven by livestreaming e-commerce growth.

• Gross profit for 2023 was RMB 53.1 million, with a net loss of RMB 14.5 million, improved from a RMB 53.6 million loss in 2022.

• Livestreaming e-commerce revenue rose 84% year-over-year to RMB 503.4 million in 2023.

• Cash and cash equivalents at year-end 2023 were RMB 3.8 million; no outstanding bank loans.