Highlights

  • Addentax agreed three Regulation S share placements between July and September 2026, each priced at US$4.80 per share.
  • The placements cover 1,718,752 shares for combined gross proceeds of about US$8.25 million before costs.
  • Revenue for the quarter ended 30 June 2026 rose to US$3.44 million from US$826,354, led by consulting.
  • The company acquired Hong Kong licensed money lender Time Is Loan Limited on 15 May 2026 for shares.

Addentax Group Corp. (NASDAQ:ATXG) has lined up roughly US$8.25 million in Equity funding through three private placements agreed between July and September 2026, all at US$4.80 per share, as the Shenzhen-based company reshapes its Business around consulting, logistics and financing services.

The Capital raising follows a series of acquisitions and a one-for-fifteen Reverse Stock Split that took effect on 30 March 2026.

Placements Agreed With Offshore Investors

On 30 July 2026, Addentax agreed to sell 677,084 shares for about US$3.25 million to three investors, including Hong Zhihao and Hong Zhiwang, brothers of Chief Executive Officer and Chairman Hong Zhida. Hong Zhiwang is also a director, and the audit committee approved their subscriptions as related-party transactions.

Two further agreements followed: 520,834 shares to Chan Chun Hong on 9 September 2026 and 520,834 shares to Chan Kai Sang on 28 September 2026, each raising about US$2.5 million. All shares are being issued under Regulation S to non-U.S. persons, subject to customary closing conditions, with proceeds earmarked for Working Capital and potential strategic investments.

Separately, on 27 July 2026 the company agreed to convert a US$699,885 loan plus US$3,500 of interest owed to lender Seah Chia Yee into 146,539 shares at the same US$4.80 price.

A Reshaped Business Mix

Addentax now reports four segments: garment manufacturing, logistics services, consulting and financing. The financing arm was added on 15 May 2026 through the Acquisition of Time Is Loan Limited, a Hong Kong licensed money lender, for 137,790 shares. The company also took a 62.18% stake in Keemo Fashion Group on 30 March 2026 and a 41.67% interest in Riches Family Office Limited on 15 June 2026. Its former property management and subleasing business was discontinued after the related Subsidiary was disposed of on 1 July 2025.

Quarterly Revenue Climbs on Consulting

For the first quarter of fiscal 2027, the three months ended 30 June 2026, total revenue rose to US$3.44 million from US$826,354 a year earlier. Consulting contributed US$2.54 million, logistics US$721,196 and financing US$172,185, while no garment revenue was recorded.

Gross profit increased to US$414,625, but the loss from operations widened to US$676,071. Net Income came to US$2.39 million, against a net loss of US$392,438, mainly reflecting a US$3.02 million non-cash Fair Value gain on warrants.

Liquidity and the Road Ahead

Cash and cash equivalents stood at US$762,649 on 30 June 2026. The company has disclosed substantial doubt about its ability to continue as a going concern, citing a history of operating losses and negative operating cash flows. Shares outstanding were 1,177,974 on 14 August 2026, before the September placements.