NEW YORK, May 15 (Xinhua) -- AGBA Acquisition, a Chinese blank check company (or SPAC, special purpose acquisition company) targeting the services sector in China, has started trading on the Nasdaq Stock Market.
The company, trading under the ticker symbol of "AGBAU," planned to raise up to 40 million U.S. dollars by offering 4 million units at a price of 10 dollars per unit, according to its prospectus filed with the U.S. Securities and Exchange Commission on Wednesday.
Each unit consists of one ordinary share, one redeemable warrant, and one right to receive one-tenth of an ordinary share upon the consummation of an initial business combination.
Each redeemable warrant entitles the holder thereof to purchase one-half of one ordinary share, according to the company.
Maxim Group LLC acted as a lead manager on the deal.
AGBA Acquisition cautioned possible risks of investing in its securities mainly due to the unique business mode of a blank check company.
"Until we complete our initial business combination, we will have no operations and will generate no operating revenues," the company said in its latest prospectus.
Founded in 2018, the Hong Kong-based company was formed for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities, which it refers to as a "target business."
It primarily focuses on operating businesses in the healthcare, education, entertainment and financial services sectors that have their principal operations in China.
