Autozi Internet Technology (Global) Ltd. (NASDAQ: AZI) has reached a preliminary consensus to subscribe for newly issued shares of Token Cat Limited (NASDAQ: TC) at a price of $30 per share, representing an estimated investment of roughly $100 million. The agreement is still subject to further negotiation, definitive agreements, and regulatory approval, but the terms indicate a substantial capital injection into Token Cat’s balance sheet.
Token Cat’s financial profile underscores the strategic importance of the investment. The company’s market capitalization is about $25.92 million, and it has posted a 3‑year revenue decline of 58.5 percent, an operating margin of –217.35 percent, and a net margin of –400.87 percent. In addition, Token Cat has faced Nasdaq compliance challenges related to minimum bid price and has recently completed a 1‑for‑20 reverse ADS split to address those issues. The infusion of capital is therefore critical to shore up Token Cat’s liquidity and to support its ongoing initiatives in automotive group‑buying, digital marketing, and related services.
Autozi’s broader strategy focuses on capitalization, digitalization, and globalization. The company has recently announced a memorandum of understanding for approximately $980 million in procurement intentions and a proposed $300 million investment from CDIB Capital. By investing in Token Cat, Autozi seeks to create synergies across automotive sales, after‑sales services, and channel integration, leveraging its expertise in the automotive sector and Token Cat’s platform operations. The partnership aligns with Autozi’s goal of expanding its footprint in electric‑vehicle components and special‑purpose vehicles.
The investment will strengthen Token Cat’s capital base, enabling it to pursue growth in its core segments—auto shows, special‑promotion event services, virtual dealerships, and online marketing. With additional working capital, Token Cat can accelerate the development of its digital platforms, expand its customer base, and address the liquidity constraints that have hampered its ability to invest in technology and talent. For Autozi, the deal provides a foothold in a niche automotive services provider that complements its existing portfolio and offers potential cross‑sell opportunities.
Investors have responded positively to the announcement, reflecting confidence in the strategic rationale and the potential for value creation. While the transaction remains contingent on regulatory approval and final terms, the market view suggests that the partnership is viewed as a constructive step toward stabilizing Token Cat’s financial position and unlocking future growth opportunities.
The preliminary consensus is a material event that will likely influence the long‑term outlook for both companies. The deal is expected to close after the completion of due diligence and regulatory review, and both parties have indicated that they are working toward a definitive agreement that will formalize the terms and timelines for the investment.
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