Cheer Holding, Inc. announced on October 2, 2025, the closing of a public offering that generated gross proceeds of approximately $8.5 million. The offering consisted of 12,686,565 units, each priced at $0.67 and comprising one Class A ordinary share (or a pre-funded warrant), one Series A warrant, and one Series B warrant.
Both Series A and Series B warrants have an exercise price of $0.7035 per Class A Ordinary Share and are exercisable for one year from the issuance date. Notably, the Series B warrants include an alternative cashless exercise option, allowing holders to receive 5.1235 Class A Shares for each Series B Warrant exercised at a zero exercise price.
The net proceeds from this offering are intended for general working capital purposes and other general corporate uses, including sales and marketing expenses for user acquisition. However, the inclusion of Series B Warrants with a zero exercise price option introduces substantial potential for dilution for existing shareholders, a factor explicitly highlighted in the company's risk assessment.
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