Top Wealth Group Holding Limited (NASDAQ:TWG) saw its shares collapse by 70% early Tuesday, erasing a massive 266% surge from the previous session, after the company unveiled the pricing of a new public offering worth $5.04 million.
The premium sturgeon caviar and winery products supplier priced a best-efforts offering of 720,000 units at $7.00 each. Every unit is composed of one Class A ordinary share along with one Series A Class A Warrant and one Series B Class A Warrant, both carrying an exercise price of $7.00 per share.
Should all warrants be exercised for cash, Top Wealth Group could raise an additional $10.08 million in gross proceeds, although the company cautioned that warrant exercises are not guaranteed.
The Series A warrants will be valid for five years following issuance, while the Series B warrants have an 18-month lifespan. The offering is expected to close around December 10, 2025, pending standard closing conditions.
Univest Securities is acting as the exclusive placement agent. The company said proceeds will be allocated toward general corporate purposes and working capital needs.
The dramatic stock drop reflects the sharp reversal from Monday’s extreme rally, highlighting heightened volatility surrounding the small-cap luxury food and beverage company.