A2Z Cust2Mate Solutions Corp. Announces Aggregate US$1.8 Million Registered Direct Offering, Priced at $2.80 Per Share, with No Warrants

Rhea-AI Summary

A2Z Cust2Mate Solutions Corp. (NASDAQ:AZ), a global leader in innovative technology solutions, has announced a registered direct offering of up to 642,860 common shares at a price of US$2.80 per share, aiming to raise an aggregate of US$1.8 million. The offering, which includes no warrants, is expected to close around October 15, 2024, subject to customary conditions. A2Z plans to use the net proceeds for working capital and general corporate purposes. The shares are being offered under a previously filed "shelf" registration statement, with no placement agent involved. The company has emphasized that these securities are not being offered in Canada.

Positive

• Raising US$1.8 million in capital
• No warrants included in the offering, potentially reducing future dilution
• Funds to be used for working capital and general corporate purposes

Negative

• Potential dilution of existing shareholders' ownership
• Offering price of $2.80 per share may be below current market price

Insights

Financial Analyst

A2Z Cust2Mate Solutions Corp.'s announcement of a $1.8 million registered direct offering is a significant development for the company. The offering price of $2.80 per share, with no warrants attached, suggests a clean capital raise structure. This pricing is notably lower than the current market price, indicating a 15-20% discount, which is relatively standard for such offerings but may put some downward pressure on the stock in the short term.

The company's decision to raise capital through a registered direct offering, rather than a public offering, allows for a faster and potentially less dilutive process. The absence of warrants is positive, as it avoids potential future dilution. However, the relatively small size of the offering ($1.8 million) for a company with a market cap of over $52 million raises questions about the adequacy of the funds for significant operational expansion or major projects.

Investors should closely monitor how A2Z utilizes these funds for working capital and general corporate purposes. The lack of a specific use of proceeds beyond general terms could be seen as a red flag, potentially indicating a need to shore up the balance sheet rather than fund growth initiatives. Overall, while the capital raise provides some financial flexibility, its impact on the company's long-term prospects remains to be seen.

10/11/2024 - 04:05 PM

TEL AVIV, ISRAEL / ACCESSWIRE / October 11, 2024 / A2Z Cust2Mate Solutions Corp. (the "Company" or "A2Z") (NASDAQ:AZ), a global leader in innovative technology solutions, today announced that it has entered into a definitive securities purchase agreement with certain accredited investors to issue, in a registered direct offering, up to 642,860 common shares at a purchase price of US$2.80 per share. Subject to customary closing conditions, the transaction is expected to close on or around Tuesday, October 15, 2024. A2Z anticipates that the net proceeds from this offering, after deducting offering expenses, will be used for working capital and general corporate purposes. No placement agent was used or participated in the offering.

The common shares in the offering are being offered pursuant to a "shelf" registration statement on Form F-3 (File No. 333-271226), which was declared effective by the Securities and Exchange Commission (the "SEC") on April 21, 2023. A prospectus supplement and the accompanying prospectus relating to the registered direct offering will be filed with the SEC. Electronic copies of the prospectus supplement and the accompanying prospectus relating to the registered direct offering may be obtained, when available, at the SEC's website at http://www.sec.gov. These securities are not being offered in Canada and may not be sold in Canada or to residents of Canada.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About A2Z Cust2Mate Solutions Corp.

A2Z Cust2Mate Solutions Corp. creates innovative solutions for complex challenges. A2Z's flagship product is the world's first proven-in-use mobile self-checkout shopping cart. With its user-friendly smart algorithm, touch screen, and other technologies, Cust2Mate streamlines the retail shopping experience by scanning purchased products and enabling in-cart payment so that customers can simply "pick & go", and bypass long cashier checkout lines. This results in a more efficient shopping experience for customers, less unused shelf-space and manpower requirements, and advanced command and control capabilities for store managers.

Forward Looking Statements

Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These statements include, without limitation, statements related to our ability to close the registered direct offering, entry into additional securities purchase agreements, the consummation of additional tranches, if any, and the use of proceeds. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the market and other conditions, the impact of geopolitical, economic, competitive and other factors affecting the Company and its operations, and other factors detailed in reports filed by the Company with the Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities described herein.

Company Contact:

Gadi Graus, CEO
Gadi.g@a2zas.com
+972-3-3732328

Investor Contact:

John Gildea, VP corporate communication
john@a2zas.com
+353-8-68238177

SOURCE: A2Z Cust2Mate Solutions Corp.

View the original press release on accesswire.com

FAQ

What is the size and price of A2Z Cust2Mate Solutions Corp's (AZ) recent offering?

A2Z Cust2Mate Solutions Corp (NASDAQ:AZ) announced a registered direct offering of up to 642,860 common shares at a price of US$2.80 per share, aiming to raise an aggregate of US$1.8 million.

When is the expected closing date for A2Z's (AZ) registered direct offering?

The registered direct offering is expected to close on or around Tuesday, October 15, 2024, subject to customary closing conditions.

How does A2Z Cust2Mate Solutions (AZ) plan to use the proceeds from the offering?

A2Z Cust2Mate Solutions Corp plans to use the net proceeds from the offering for working capital and general corporate purposes.

Are there any warrants included in A2Z's (AZ) recent offering?

No, the registered direct offering announced by A2Z Cust2Mate Solutions Corp does not include any warrants.