Armlogi Holding Corp Announces Standby Equity Purchase Agreement with YA II PN, Ltd.

On November 25, 2024, Armlogi Holding Corp (“the Company”) entered into a Standby Equity Purchase Agreement (SEPA) with YA II PN, LTD., initiating a financial agreement significant for the Company. The SEPA entails that YA II PN, LTD. will provide Armlogi with a Pre-Paid Advance totaling $21 million, to be reflected through convertible promissory notes released in three tranches based on certain conditions. The annual interest on the outstanding principal balance, starting at 0%, can reach up to 18% in case of any default event, maturing by November 25, 2026.

The first tranche of $5 million was disbursed on the Effective Date, and the subsequent tranches of $5 million and $11 million will follow. Armlogi reserves the right to require YA to purchase up to $50 million of Common Stock through Advance Notices until December 1, 2026. The SEPA is bounded by limitations to prevent YA from owning more than 4.99% of outstanding shares of Common Stock.

The Company is obligated to pay a Commitment Fee of $500,000, with half payable through Common Stock issuance and the other half in cash or by way of an Advance. The SEPA also involves a Global Guaranty Agreement ensuring the Company’s obligations are guaranteed by its subsidiaries. Furthermore, the Company established a Registration Rights Agreement with YA II PN, Ltd., agreeing to register the Common Stock underlying the SEPA and the Commitment Fee.

Armlogi Holding Corp intends to use the proceed of the offering for working capital, corporate purposes, and to repay any pre-paid advances. D. Boral Capital LLC served as the exclusive placement agent for the Offering. The Company has a plan to cater to cross-border e-commerce merchants with warehouses spanning over three million square feet for comprehensive warehousing and logistics solutions.

Please note that the above description concerning the Standby Equity Purchase Agreement, Promissory Notes, SEPA Guaranty, and SEPA Registration Rights Agreement is not exhaustive and is best understood by referring to the respective exhibits attached to the 8-K filing with the SEC.

In conclusion, this agreement stands to enhance Armlogi Holding Corp’s financial position, enabling strategic growth through the structured financial arrangement.

Please note that this article is based on the information in the Form 8-K filed by Armlogi Holding Corp and is not an official press release.

Thank you.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Armlogi’s 8K filing here.

About Armlogi

Armlogi Holding Corp. is a warehousing and logistics service provider which offers a comprehensive package of supply-chain solutions related to warehouse management and order fulfillment. Armlogi Holding Corp. is based in WALNUT, CA.