Chijet Motor Company Inc. completed a registered direct offering of 8,461,530 Class A ordinary shares at $1.30 each, generating approximately $11 million in gross proceeds. The transaction was executed under the company’s Form F‑3 registration statement, which the SEC declared effective on August 16, 2024.
The offering comes at a time when Chijet’s financial position remains fragile. 2024 revenue fell 27% to $6.92 million and the company posted a net loss of $46.90 million, underscoring a steep decline in profitability. The $11 million infusion is intended to shore up liquidity, but it also dilutes existing shareholders and signals that the company still faces significant cash burn and debt obligations.
Strategically, Chijet is pivoting away from its legacy automotive business toward digital assets and edge intelligence. The company recently announced a partnership with EdgeAI Frontier Technology to acquire up to $1 billion in EdgeAI tokens at a 20% discount and to serve as a validator node on the EdgeAI blockchain. This move reflects a broader shift toward the digital asset custody and storage market, a sector that offers higher growth potential but also introduces new regulatory and market risks.
Management emphasized that the capital raise is a necessary step to maintain operations while the company restructures its business model. The company’s CEO noted that the liquidity boost will support ongoing technology investments and help meet short‑term obligations, but also acknowledged that the transition to digital assets is still in early stages and will require additional capital. The company’s market capitalization remains low, around $1.4 million to $1.74 million, highlighting the limited financial cushion.
The offering is part of a series of recent financing activities, including a $15 million registered direct offering in October 2025 and a memorandum of understanding for a private placement of up to $1 billion. These moves illustrate Chijet’s aggressive strategy to raise capital while redefining its core business, but they also raise concerns about the company’s long‑term viability and the sustainability of its new business focus.
The $11 million direct offering is a material event that will influence analysts’ and investors’ views on Chijet’s liquidity, capital structure, and strategic direction. While the immediate cash infusion provides short‑term relief, the company’s ongoing financial distress and strategic pivot suggest that the event will be closely scrutinized by stakeholders looking for signs of a turnaround.
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