#United States #New York #IPO #Digital Technology #Hong Kong Pharma

Hong Kong Pharma Digital Technology Holdings Limited Sets IPO Price at $4.00

On January 14, 2025, Hong Kong Pharma Digital Technology Holdings Limited, a forefront provider of OTC pharmaceutical cross-border e-commerce supply chain solutions in Hong Kong, announced the pricing of its initial public offering (IPO). The company is offering an aggregate of 1,403,685 ordinary shares with a par value of $0.001 each, setting the public offering price at $4.00 per share. Out of these shares, 1,000,000 are being provided by Hong Kong Pharma while 403,685 are being offered by the Company’s selling shareholders.

The total gross proceeds anticipated from this Offering stand at approximately $4 million, before the deduction of underwriting discounts and other associated expenses. It is important to note that the company will not receive any earnings from the shares sold by the selling shareholders. Moreover, the company has provided the underwriters a 45-day Over-Allotment Option to purchase an additional 150,000 ordinary shares at the initial offering price, deducting the applicable underwriting discounts.

Trading for the company’s shares on the Nasdaq Capital Market is slated to commence on January 15, 2025, under the ticker symbol “HKPD”. The offering concludes on January 16, 2025, subject to standard closing conditions.

Hong Kong Pharma expects to net approximately $2.9 million from the IPO. Should the Over-Allotment Option be fully exercised, the net proceeds are estimated to increase to around $3.5 million after accounting for underwriting discounts and offering expenses. The company has earmarked these funds primarily for:

• - Development and enhancement of its supply chain enterprise resource planning systems.
• - Procurement of warehouse equipment aimed at increasing operational efficiency.
• - Expansion of the sales and marketing team to catalyze business growth.
• - General working capital necessities and assorted corporate purposes.

The IPO is structured on a firm commitment basis, with Bancroft Capital, LLC leading as the principal underwriter, and Eddid Securities USA Inc. serving as the co-underwriter. Legal advisory for U.S. securities matters to the company is being provided by Bevilacqua PLLC, while Ortoli Rosenstadt LLP is advising the lead underwriter regarding the offering.

In terms of compliance, a registration statement on Form F-1 (File No. 333-282876) related to this offering was duly filed with the U.S. Securities and Exchange Commission (SEC) and achieved effective status on December 20, 2024. It is further noted that the offering will only be conducted via a prospectus.

Hong Kong Pharma Digital Technology Holdings Limited primarily engages in two service segments: (i) OTC pharmaceutical cross-border e-commerce supply chain services, facilitated through its Hong Kong subsidiary, Joint Cross Border Logistics Company Limited, and (ii) OTC pharmaceutical cross-border procurement and distribution, undertaken via its subsidiary, V-Alliance Technology Supplies Limited.

Through collaboration with suppliers of OTC pharmaceutical products and logistics companies, the company enables Mainland Chinese customers to access needed products outside their borders, offering a streamlined, one-stop solution.

The comprehensive services provided by Joint Cross Border encompass:

• - Pre-consultation and product information review
• - Product procurement from overseas sources
• - Product registration with the Hong Kong Department of Health
• - Import and export permit acquisition
• - Comprehensive warehousing solutions
• - Product packaging
• - Logistics and end-to-end delivery management

For further information, you may visit Hong Kong Pharma's official website.

All statements regarding future expectations, beliefs, and trends expressed in this release are based solely on the current data available and are valid as of the reporting date. The company disclaims any obligation to update forward-looking statements unless mandated by law. Investors are advised to review other factors impacting future outcomes which can be explored in the company's registration statement and SEC filings, accessible via SEC's website.