Shares of Aifu rose after the company agreed to sell to certain investors about $135 million of shares and warrants in a private placement.

The stock rose 8.7% to $9.89 in post-market trading Thursday after initially falling into the red following the close. Shares closed down 11% at $9.10 and have fallen 83% this year.

The Chinese financial services platform said it agreed to issue and sell 45 million shares for $3 each, as well as a warrant to buy up to an additional 90 million shares. Half of the warrant is exercisable at 200% of the per share purchase price, with the other half exercisable at 250% of the price.

Aifu said it expects to generate around $135 million in gross proceeds from the issuance, which is expected to close by the end of October. The proceeds will go toward executing the company's business plans and for general corporate purposes.

The company said the largest investor in the transaction is expected to hold about 56% of the company's outstanding shares representing 3.19% of its voting power, assuming the warrant is not exercised.