Autozi Internet Technology (Global) Ltd. (NASDAQ: AZI) announced a new equity investment of $90 million from Catalyst Digital Intelligence Business Ltd. (CDIB). The investment is priced at $3.50 per share, a premium to the company’s trading price of roughly $1.52 at the time of the announcement, and represents the first substantive capital commitment following a non‑binding letter of intent issued on December 17.
The $90 million infusion is intended to shore up Autozi’s balance sheet and fund the expansion of its digital automotive services. Management highlighted that the capital will support the development of an integrated online‑offline platform and the cross‑border supply‑chain cloud platform being built with Wanshan International, a partnership that aims to generate $1 billion in overseas sales over the next three years and has already launched a European version of the platform.
Autozi’s financial position has been under pressure. The company reported 2024 revenue of $124.74 million, up 9.86% from the prior year, but losses widened significantly. Over the last twelve months, revenue reached $156.47 million, a 32.9% increase, while gross profit margins remained thin at 1.6%. Cash burn is high, with a current ratio of 0.46 and a market capitalization that has fluctuated between $3.65 million and $8.24 million. The company also faced Nasdaq non‑compliance notifications and completed a 50‑for‑1 reverse split effective December 12.
Management emphasized that the investment “reflects strong recognition from international capital markets regarding our business model and growth prospects” and will “significantly strengthen our capital position.” CDIB’s confidence is underscored by its earlier, larger proposal of $300 million at $5.00 per share, which was revised to the current terms as part of a recalibrated strategy to provide a more immediate lifeline to Autozi.
The transaction is subject to customary closing conditions, including definitive agreements and regulatory approvals. While the investment price offers a premium, the deal’s completion will provide the liquidity needed for Autozi to execute its digital transformation, expand its global footprint, and potentially pursue strategic acquisitions in the automotive technology space.
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