ATA Creativity Global enters agreement for $8.85 million stock offering

ATA Creativity Global (NASDAQ: AACG) entered into a subscription agreement on November 17, 2025, for a registered direct offering of 11,067,547 American Depositary Shares at $0.8 per ADS, according to a company statement.

The Beijing-based educational services company will raise approximately $8.85 million in gross proceeds before deducting offering expenses. Each ADS represents two common shares with a par value of $0.01 per share, making the effective price $0.4 per common share.

Three purchasers participated in the offering, which remains subject to customary closing conditions outlined in the subscription agreement. The securities are being offered through a prospectus supplement under the company's effective shelf registration statement filed with the Securities and Exchange Commission.

The purchasers and company Chairman and CEO Xiaofeng Ma, along with affiliated entities Able Knight Development Limited and Joingear Limited, agreed to lock-up provisions. These agreements prevent the transfer of company securities from the closing date until April 30, 2026, subject to standard exceptions.

The company stated that net proceeds will be used for general working capital, pending board of directors approval.

ATA Creativity Global provides educational services focused on cultivating student creativity, including portfolio training, research-based learning services, and overseas study counseling through its training center network.

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