Autozi Internet Technology (Global) Ltd. (NASDAQ: AZI) received a non‑binding investment letter from CDIB Capital International Holdings Limited proposing a $300 million capital infusion at a price of $5.00 per share. The proposal values the company at roughly $1.5 billion and would provide a substantial boost to a balance sheet that has been under pressure, with a current ratio of 0.46 and negative shareholder equity.
The letter does not yet specify whether the shares will be newly issued or purchased from existing shareholders, a detail that will determine the extent of dilution for current owners. CDIB also intends to negotiate lock‑up periods and other terms before a definitive agreement is signed, and the parties have agreed to conduct due diligence and obtain regulatory approvals in the coming weeks.
Autozi’s financial performance has been a mix of growth and loss. Revenue has risen year‑over‑year, but the company has posted increasing losses, reflecting heavy investment in technology, logistics, and market expansion. The proposed capital raise is therefore seen as a critical step to shore up liquidity, reduce leverage, and fund the company’s aggressive international expansion strategy, which includes channel development, product upgrades, and localization of services in key overseas markets.
The market reacted strongly to the announcement, with the stock trading at a pre‑market premium of $5.00 per share compared to a trading price of $1.87. This 165% premium reflects investor confidence in the potential upside of the capital infusion and the strategic partnership with CDIB, which brings experience in overseas capital markets and industrial investments. The reaction was amplified by a prior Memorandum of Understanding for $980 million in procurement intentions that had already lifted the stock earlier in the week.
Because the investment letter is non‑binding, the deal remains contingent on successful due diligence, regulatory clearance, and the negotiation of definitive terms. Management has indicated that the company will move quickly to finalize the transaction, but no firm closing date has been set. The outcome will have a material impact on Autozi’s capital structure, liquidity, and ability to pursue its growth agenda.
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