Jiuzi Holdings Inc (NASDAQ:JZXN) shares are plunging over 50% following a securities purchase agreement with certain institutional investors to purchase $2.3 million worth of its ordinary shares in a registered direct offering.

Under the terms of the securities purchase agreement, the company has agreed to sell an aggregate of $2.3 million ordinary shares and/or pre-funded warrants.

The purchase price per ordinary share is $1.65, and the purchase price for the pre-funded warrants is identical to the purchase price for ordinary shares.

The offering is expected to close on or about July 19, 2023. Spartan Capital Securities LLC, is acting as exclusive placement agent for the offering.

Price Action: JZXN shares are trading lower by 57% at $1.41 on the last check Monday.