AIFU Inc. (NASDAQ:AIFU) shares jumped 16.24% to $11.62 in after-hours trading on Thursday on Robinhood Markets, after the Chinese AI-driven financial services platform disclosed a 45 million Class A ordinary shares definitive share purchase agreement.

Deal Terms Point To Fresh Capital Injection

In an announcement made after markets closed on Thursday, the company said it agreed to issue shares at $3 per share. These shares come alongside warrants for up to 90 million additional shares.

According to the announcement, half the warrants carry a strike price at 200% of the per-share purchase price, while the remaining half are exercisable at 250%. The transaction is expected to generate approximately $135 million in gross proceeds.

Ownership Stake Set To Shift Significantly

Once the deal closes, AIFU will have 61.18 million total ordinary shares outstanding, comprising 50.93 million Class A and 10.25 million Class B shares, the company said. The largest investor in the transaction is expected to hold roughly 56.12% of total outstanding shares, representing 3.19% of aggregate voting power.

The share issuance is targeted to close by the end of October, subject to customary closing conditions. AIFU said proceeds will support its business plans, working capital and other general corporate purposes.

The announcement, which was made after the market closed on Thursday, resonated positively with investors. The stock closed the regular session at $9.10, down 8.27%, according to Benzinga Pro data.

Trading Metrics, Technical Analysis

AIFU has a market capitalization of $56.2 million, a 52-week high of $117.4 and a 52-week low of $8.17. The company has approximately 5.93 million shares outstanding.

The Relative Strength Index (RSI) of AIFU stands at 30.86.

The small-cap stock has fallen 91.99% over the past 12 months.

AIFU is currently trading very close to its 52-week low.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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