Shares of Mingteng International Corp Inc (NASDAQ:MTEN) dropped sharply on Wednesday, sliding 32.4% after the company announced the pricing of a discounted registered direct offering at $2.00 per share.
The automotive mold developer said it set the price for 1.48 million Class A ordinary shares in the registered direct offering. In addition to the equity, Mingteng issued pre-funded warrants tied to Class A ordinary shares with an original exercise price of $2.00. Under that arrangement, $1.99995 of the exercise price for those pre-funded warrants was funded at closing, leaving a nominal remaining exercise amount of $0.00005 per share.
Simultaneously, the company completed a private placement of unregistered warrants. Those private warrants provide the holder the right to purchase up to 1.48 million Class A ordinary shares at an exercise price of $2.00 per share. The private warrants are exercisable from the closing date and carry an 18-month term before expiration.
Mingteng estimated the combined gross proceeds from the registered direct offering and the concurrent private placement to be approximately $2.96 million, before deducting placement agent fees and other offering expenses. The company stated it intends to apply the net proceeds for working capital and general corporate purposes.
The offering is expected to close on or about June 18, 2026, subject to customary closing conditions.
Company profile
Based in China, Mingteng International Corporation Inc. develops and supplies automotive molds used in auto parts manufacturing. The firm provides a range of mold services that include design and development, production, assembly, testing, repair and after-sales service.
Placement agent
FT Global Capital, Inc. is acting as the exclusive placement agent for the offering.
Context and market reaction
The market's immediate response was pronounced: the share price decline followed the announcement of the $2.00 pricing, which represented a material discount to recent trading levels. The financing structure includes pre-funded warrants and unregistered warrants exercisable at the same $2.00 level, with the private warrants expiring 18 months after issuance.
Investors and market participants should note that gross proceeds are stated before fees and offering expenses, and the expected closing date is on or about June 18, 2026.