Pop Culture Group Co., Ltd, (NASDAQ:CPOP), a hip-pop culture company in China, took a nose dive following the pricing of its initial public offering on Wednesday of 6,200,000 Class A Ordinary Shares at a public offering price of $6.00 U.S. per share.
The Company expects to receive aggregate gross proceeds of $37.2 million U.S. from the Offering, before deducting underwriting discounts and other related expenses. In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 930,000 Class A Ordinary Shares at the public offering price, less underwriting discounts.
Proceeds from the Offering will be used to develop and operate online content, develop a street dance training business, create derivative works of hip-hop intellectual properties, and develop hip-hop events, and for working capital and other general corporate purposes.
The Offering was conducted on a firm commitment basis. Network 1 Financial Securities, Inc. and Valuable Capital limited are acting as the underwriters for the Offering. Hunter Taubman Fischer & Li LLC is acting as counsel to the Company, and VCL Law LLP is acting as counsel to the underwriters in connection with the Offering.
CPOP shares plummeted $9.98, or 16.7%, Friday to $49.92.
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