TDH Holdings, Inc. (PETZ), a company that develops, manufactures, and sells pet food products for pet owners, is skyrocketing in aftermarket trading session. At the time of the writing, PETZ stock is trading at $7.01 after soaring 195.78%. The increase is attributable to the company’s announcement to close the placement of common shares. On Wednesday, PETZ closed the day at $2.37 after increasing 32.40% during regular trading hours.
Why PETZ Surging?
In the late hours of Wednesday, PETZ announced that it had entered into a securities purchase agreement with certain institutional investors for a registered direct offering and closed the offering. The offering raised approximately $9.9 million in gross proceeds from the sale of 15,000,000 common shares for $0.64 per share and warrants for $0.01 per warrant to purchase an aggregate of 30,000,000 common shares before deduction of the expenses. The warrants were exercisable for $1.47 per share. The company said that it intends to use the net proceeds for strategic acquisitions and investments.
Fiscal 2020 Financial Results
On 26th April 2021, PETZ reported the financial results for the fiscal year 2020. The company generated revenue of $0.82 million during the year against $12.65 during fiscal 2019. The company suffered a loss of $1.93 from the operations during the quarter against $6.96 for the same period of 2020. The gross loss suffered by the company was $0.04 million during the year against $1.52 during fiscal 2019. The net loss suffered by the company was $0.87 during 2020 against $8.63 during the same period of 2020. The net loss per share was $0.02 during 2020 against $0.41 for the same period of 2019.
Dandan Liu, CEO of PETZ, while commenting on the results said that numerous factors have imparted their influence on the performance of the company, particularly pandemic outbreaks, which slowed the progress of the business. He said that looking forward; the company hopes to improve its business profitability in the coming quarters.
During the last month, PETZ has surged more than 66%. Estimates suggest that the company would achieve truly monumental success in the near future based on the subsiding impacts of pandemic and business expansion plans by the company which could provide it with numerous dividends in the long run.