Star Fashion Culture (STFS) Shares Tumble 7% After Hours: Here's Why

Star Fashion Culture Holdings Ltd. (NASDAQ:STFS) shares fell 7.21% to $3.28 in after-hours trading Monday after the company announced the closing of its share offering. Star Fashion Culture is a China-based company developing online marketing services, according to the filing. Offering Details Star Fashion Culture closed an offering of 12 million Class A Ordinary Shares at $0.80 per Class A Ordinary Share on Sept. 28, according to a Form 6-K filed with the SEC. The shares were offered in a best-effort offering under Securities Purchase Agreements with investors named in the agreements. The company engaged Kingswood Capital Partners, LLC as placement agent. Star Fashion Culture paid Kingswood a cash fee equal to 6.5% of the gross proceeds raised in the offering and reimbursed the placement agent for certain expenses, including a non-accountable expense of 0.6% of the gross proceeds. Star Fashion Culture said it intends to use the net proceeds of the offering for developing its online marketing services and for general administration and working capital. Registration Details The Class A Ordinary Shares were offered pursuant to a registration statement on Form F-1, as amended, originally filed with the SEC on Sept. 17. The Form F-1 was declared effective on Sept. 24, and the final prospectus was filed on Sept. 25. Read Also: Trump's AI Lunch Will Bring Together Mark Zuckerberg, Jensen Huang, Other Tech Bigwigs: Here's Who Else Is Invited Trading Metrics, Technical Analysis Star Fashion Culture has a market capitalization of approximately $4.22 million. Over the past year, Star Fashion Culture shares have fallen 58.02%. The stock has traded between a 52-week high of $20.99 and a 52-week low of $0.81. Benzinga’s Edge Stock Rankings show a negative price trend across short-, medium- and long-term time frames. Price Action: In the regular session, Star Fashion Culture shares fell 4.20% to close at $3.54 on Monday. See More: Top Value Stocks Photo: tadamichi on Shutterstock.com