A2Z Smart Technologies Corp. Announces Withdrawal of Proposed Public Offering

Rhea-AI Summary

A2Z Smart Technologies Corp. withdraws public offering, opts for direct offering and private placement. Anticipated total raise up to $7 million.

Insights

Financial Analyst

The decision by A2Z Smart Technologies Corp. to withdraw its proposed public offering and proceed with a registered direct offering and a private placement represents a significant shift in the company's capital-raising strategy. This pivot could imply a reassessment of market conditions or a strategic move to retain greater control over the offering process. The anticipated amount of up to $7,000,000 in combined offerings is relatively modest, which suggests that the company may be targeting specific investments or operational needs rather than a large-scale expansion.

Investors should consider the implications of the company not using a placement agent. While this could reduce fees, it also means the company takes on the full responsibility of marketing and selling the offering, which could impact the effectiveness and reach of the distribution. The market's reception to this news will likely depend on the perceived reasons for the strategy shift and the company's ability to execute the direct offering successfully.

Market Research Analyst

From a market perspective, A2Z Smart Technologies Corp.'s strategic shift to a direct offering without a placement agent is unusual but not unprecedented. It could be seen as a response to a more selective and cautious investment climate, particularly for tech companies. The direct offering approach may appeal to a specific subset of investors who are looking for potentially lower-priced entry points into the company's equity, as direct offerings can sometimes be priced more attractively than public offerings.

However, the lack of a placement agent could also be a red flag for some investors, as it removes a layer of due diligence typically provided by such agents. The company's ability to close on these offerings will be a key indicator of investor confidence. If successful, it could signal a certain level of investor trust in the company's management and future prospects.

Legal Expert

The legal implications of A2Z Smart Technologies Corp.'s withdrawal of its public offering and the move to a registered direct offering are noteworthy. The company must navigate securities regulations carefully to ensure compliance with both the registered direct offering and the subsequent private placement. The timing and structure of these offerings will be critical to avoid any regulatory pitfalls.

Furthermore, the company's clear statement that this press release shall not constitute an offer to sell or the solicitation of an offer to buy securities is a standard disclaimer aimed at compliance with securities law. It's a reminder to stakeholders that until the securities are registered or qualified under the relevant laws, the offering is not official and carries certain legal limitations on marketing and discussions with potential investors.

TEL AVIV, ISRAEL / ACCESSWIRE / April 1, 2024 / A2Z Smart Technologies Corp. (NASDAQ:AZ), ("A2Z Smart Technologies Corp." or the "Company"), today announced that it has withdrawn its previously announced proposed public offering of securities and is no longer proceeding with ThinkEquity as its placement agent. The Company instead intends to proceed, without a placement agent, with a registered direct offering of its common shares, which the Company anticipates will be up to $4,500,000, and a private placement to close on a later date which the Company anticipates will be up to $2,500,000 common shares (and/or pre-funded warrants in lieu thereof). The Company expects to announce entry into definitive binding agreements pre-market April 2, 2024.

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

About A2Z Smart Technologies Corp.
A2Z Smart Technologies Corp. creates innovative solutions for complex challenges. A2Z's flagship product is the world's first proven-in-use mobile self-checkout shopping cart, Cust2Mate. 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 may contain forward-looking statements that are subject to substantial risks and uncertainties. Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will" "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on the Company's current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the Company's filings on EDGAR and with the SEC. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. Forward-looking statements contained in this announcement are made as of this date, and 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, President
Gadi.g@a2zas.com
+972-3-3732328

Investor Contacts:
Brett Maas, Managing Principal, Hayden IR, LLC
brett@haydenir.com
(646) 536-7331

SOURCE: A2Z Smart Technologies Corp.

View the original press release on accesswire.com

FAQ

Why did A2Z Smart Technologies Corp. withdraw its proposed public offering of securities?

A2Z Smart Technologies Corp. withdrew its proposed public offering of securities and is no longer proceeding with ThinkEquity as its placement agent to instead proceed with a registered direct offering and a private placement.

What is the anticipated total raise from the direct offering and private placement by A2Z Smart Technologies Corp.?

A2Z Smart Technologies Corp. anticipates raising up to $4,500,000 through the direct offering of common shares and up to $2,500,000 through the private placement of common shares (and/or pre-funded warrants).

When does A2Z Smart Technologies Corp. expect to announce entry into definitive binding agreements for the offerings?

A2Z Smart Technologies Corp. expects to announce entry into definitive binding agreements pre-market on April 2, 2024.

Is the press release an offer to sell securities?

No, the press release states that it shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein.