Nisun discloses use of proceeds from underwritten public offering of approximately $77 million and invests approximately $32 million in 2 subsidiaries

Nisun International Enterprise Development Group Co.,Ltd NSIN announcement updates on its use of proceeds from its December 2021 underwritten public offering of approximately $77 million of its Class A common stock and pre-funded warrants to purchase Class A common stock.

Since the closing of the offering, the company has invested approximately $32 million of the net proceeds in its two subsidiaries, NiSun Ocean (Qingdao) Supply Chain Investment Co., Ltd. (“Nisun Ocean”) and Zhumadian NiSun Supply Chain Management Co., Ltd. (“Nisun ZMD”) for general corporate purposes, repaid approximately $1 million in related party debt, paid approximately $0.5 million in professional fees, and retained the remainder in its accounts for business opportunities and potential operations.

The more detailed allocations are as follows:

Nisun Ocean received investments of approximately $25 million and used approximately $3 million mainly for electronics purchases under its strategic cooperation with Shanghai Bailian Group (“Bailian”). Nisun has facilitated purchases of goods from suppliers with desirable payment terms for Bailian to access working capital quickly and cheaply. Nisun Ocean collected a supply chain solution service fee when Bailian received its funding. The balance of the investment remains in Nisun Ocean for future operations.

Nisun ZMD received about 7 million dollars of investment, almost all of which was used to purchase household products from a major online retailer in China under Nisun ZMD’s strategic cooperation with Beijing Zhiyuan Zhonglian Industrial Co., Ltd (“Zhiyuan Zhonglian”). Zhiyuan Zhonglian has also provided a deposit of approximately $1.6 million to secure payment obligations for household products purchased on its behalf.

“We are pleased to discuss our recent business development activity,” commented Mr. Xiaoyun Huang, President and CEO of Nisun International. “The company will continue to leverage its advantages and use the proceeds of its capital to invest and improve supply chain dynamics while expanding its scale. We remain committed to providing our customers with efficient and high quality supply chain solutions.

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