Benzinga | Apr 9, 2021 06:02AM EDT

Lizhi Raises $30M Via Secondary Institutional Equity Sale For Online Audio Business Development

* Chinese online UGC audio community and interactive audio entertainment platform Lizhi Inc (NASDAQ: LIZI) sold 3.7 million shares in a secondary private institutional offering at $8.14 per share to raise $30 million.

* The offer price is at par with Lizhi's Thursday closing price of $8.14.

* The offering also includes warrants to purchase 2.8 million shares at an exercise price of $8.14.

* The offering proceeds will be used for its online audio business development in overseas markets and mainland China and other general corporate purposes.

* Kingswood Capital Markets, a division of Benchmark Investments, Inc is the exclusive placement agent for the offering.

* Lizhi recently inked a partnership agreement with Alibaba Group Holding Ltd (NYSE: BABA) affiliate Ant Group's blockchain-based technology brand AntChain to facilitate copyright protection of podcasts with blockchain technology.

* Lizhi held cash and equivalents of $60.1 million (RMB392.2 million) as of Dec. 31, 2020.

* Price action: LIZI shares traded lower by 0.86% at $8.07 in the premarket session on the last check Friday.