Captivision Strengthens Financial Position
Captivision Inc. (NASDAQ: CAPT), a pioneer in architectural media glass, has announced strategic improvements to its balance sheet. The company has converted approximately $4.2 million of outstanding debt into equity at a price of $3.00 per share, issuing 1,414,895 shares. Additionally, Captivision Korea, a wholly owned subsidiary, has raised approximately $2.2 million through a private placement bond issuance.
These financial maneuvers aim to strengthen Captivision's financial position as the company anticipates important business catalysts and milestones. CEO Gary Garrabrant expressed appreciation for investors' continued support and confidence in the company's future success.
Captivision Inc. (NASDAQ: CAPT), pioniere nel settore del vetro mediatico architettonico, ha annunciato miglioramenti strategici al suo bilancio. L'azienda ha convertito circa 4,2 milioni di dollari di debito in azioni a un prezzo di 3,00 dollari per azione, emettendo 1.414.895 azioni. Inoltre, Captivision Korea, una controllata interamente posseduta, ha raccolto circa 2,2 milioni di dollari attraverso un'emissione di obbligazioni private.
Queste manovre finanziarie mirano a rafforzare la posizione economica di Captivision, mentre l'azienda si prepara a importanti catalizzatori e tappe commerciali. Il CEO Gary Garrabrant ha espresso apprezzamento per il continuo supporto e la fiducia degli investitori nel futuro successo della compagnia.
Captivision Inc. (NASDAQ: CAPT), pionero en vidrio mediático arquitectónico, ha anunciado mejoras estratégicas en su balance. La compañía ha convertido aproximadamente 4.2 millones de dólares de deuda pendiente en acciones a un precio de 3.00 dólares por acción, emitiendo 1,414,895 acciones. Además, Captivision Korea, una subsidiaria de propiedad total, ha levantado aproximadamente 2.2 millones de dólares a través de una emisión privada de bonos.
Estas maniobras financieras tienen como objetivo fortalecer la posición financiera de Captivision mientras la empresa anticipa importantes catalizadores y hitos comerciales. El CEO Gary Garrabrant expresó su agradecimiento por el continuo apoyo y confianza de los inversores en el éxito futuro de la compañía.
Captivision Inc. (NASDAQ: CAPT), 건축 미디어 유리의 선두주자는 재무제표에 대한 전략적 개선 사항을 발표했습니다. 회사는 약 420만 달러의 미지급 부채를 주식으로 전환했습니다 주당 3.00달러의 가격으로 1,414,895주를 발행했습니다. 또한, 전액 출자한 자회사인 Captivision Korea는 사모 방식으로 약 220만 달러를 모집했습니다.
이러한 재무 조치는 Captivision의 재무 상태를 강화하는 것을 목표로 하며, 회사는 중요한 사업 촉진 요소와 이정표를 예상하고 있습니다. CEO 게리 가라브란트는 투자자들의 지속적인 지원과 회사의 미래 성공에 대한 신뢰에 감사를 표했습니다.
Captivision Inc. (NASDAQ: CAPT), un pionnier dans le domaine du verre médiatique architectural, a annoncé des améliorations stratégiques à son bilan. L'entreprise a converti environ 4,2 millions de dollars de dettes en actions à un prix de 3,00 dollars par action, émettant 1.414.895 actions. De plus, Captivision Korea, une filiale entièrement détenue, a levé environ 2,2 millions de dollars par le biais d'une émission d'obligations privées.
Ces manœuvres financières visent à renforcer la position financière de Captivision alors que l'entreprise anticipe des catalyseurs commerciaux et des jalons importants. Le PDG Gary Garrabrant a exprimé sa gratitude envers le soutien continu et la confiance des investisseurs dans le succès futur de l'entreprise.
Captivision Inc. (NASDAQ: CAPT), ein Pionier im Bereich architektonisches Medienzeugs, hat strategische Verbesserungen an seiner Bilanz bekannt gegeben. Das Unternehmen hat etwa 4,2 Millionen US-Dollar ausstehender Schulden in Eigenkapital umgewandelt zu einem Preis von 3,00 US-Dollar pro Aktie und 1.414.895 Aktien ausgegeben. Darüber hinaus hat Captivision Korea, eine hundertprozentige Tochtergesellschaft, etwa 2,2 Millionen US-Dollar durch die Emission von privaten Anleihen aufgenommen.
Diese finanziellen Manöver zielen darauf ab, die finanzielle Position von Captivision zu stärken, da das Unternehmen wichtige Geschäftskatalysatoren und Meilensteine erwartet. CEO Gary Garrabrant äußerte seine Wertschätzung für die kontinuierliche Unterstützung und das Vertrauen der Investoren in den zukünftigen Erfolg des Unternehmens.
- Conversion of $4.2 million debt to equity, improving balance sheet
- Successful private placement bond issuance raising $2.2 million
- Strengthened financial position to support future business catalysts
- Issuance of 1,414,895 new shares, potentially diluting existing shareholders
Insights
The conversion of approximately $4.2 million of outstanding debt into equity at a $3.00 price per share is a significant move for Captivision. First, it improves the company's balance sheet by reducing its debt burden, which can enhance its creditworthiness and potentially lower future borrowing costs. Equity financing is generally seen as less risky than debt and this transaction reduces leverage, making the company more financially stable.
However, issuing new shares can dilute existing shareholders' equity. For retail investors, it's important to monitor the share price performance closely. The conversion price of $3.00 per share provides a benchmark and any significant deviation from this price could signal market sentiment. In the short term, the dilution might put downward pressure on the stock price.
Overall, this move shows that the company is taking strategic steps to manage its financial health, which is a positive signal for long-term investors.
The strategic decision to raise approximately $2.2 million via a private placement bond issuance is another critical development. Private placements are typically quicker and less expensive than public offerings and they indicate that there is investor confidence in the company's future prospects. This capital can be used for various growth initiatives, including R&D, market expansion, or operational improvements.
For investors, the key takeaway is that Captivision is securing necessary funds without resorting to high-interest debt, which can be burdensome. Additionally, the participation of private investors suggests a vote of confidence in the company's strategy and future performance. This move could provide the required capital to meet upcoming business milestones, contributing positively to the company's growth trajectory.
Retail investors should view this bond issuance as a constructive development, albeit with a close watch on how effectively the raised funds are utilized.
As a pioneer in architectural media glass, Captivision operates in a niche market with significant growth potential. The reduction in debt and new capital infusion could facilitate further technological advancements and market expansion. Innovation in architectural media glass can lead to new applications and entry into untapped markets, providing a competitive edge.
Investors should consider the long-term implications of these financial moves. Strengthening the financial foundation allows Captivision to focus on R&D and possibly launch new products sooner than anticipated. The strategic improvements in their balance sheet and new funding bolster the company's ability to innovate and grow, which could result in higher market share and revenue.
Retail investors should be optimistic about Captivision's future, given its enhanced ability to sustain and drive innovation in its specialty market.
- Converted Approximately
$4.2 Million of Outstanding Debt into Equity at a$3.00 Price per Share - Raised Approximately
$2.2 Million via a Private Placement Bond Issuance by Captivision Korea
MIAMI and SEOUL, July 23, 2024 (GLOBE NEWSWIRE) -- Captivision Inc. (“Captivision” or the “Company”) (NASDAQ: CAPT), a pioneer and manufacturer of architectural media glass, today announced strategic improvements to its balance sheet, resulting in a strengthening of its financial position.
Debt-to-Equity Conversion
The Company entered into contribution agreements (the “Contribution Agreements”) with certain creditors (the “Contributors”) of its wholly owned subsidiary, Captivision Korea Inc. (“Captivision Korea”), pursuant to which the Contributors agreed to contribute the respective outstanding balances remaining under various debt agreements with Captivision Korea (the “Contributed Debt”) to the Company in exchange for the issuance by the Company of its ordinary shares in a debt to equity conversion transaction (the “Conversion”).
Pursuant to the Conversion, an aggregate of KRW 5,791,867,301 (approximately
Issuance of Bonds
Captivision Korea entered into a Private Bonds Subscription Agreement (the “Subscription Agreement”) with certain investors (each a “Subscriber” and collectively, the “Subscribers”), pursuant to which the Subscribers agreed to subscribe to and Captivision Korea agreed to issue an aggregate amount of KRW 3,100,000,000 (approximately
“We appreciate our investors’ continued support as we position Captivision for ongoing success,” said Gary Garrabrant, Chairman and CEO of Captivision. “Equitizing our outstanding debt, in coordination with the issuance of bonds and overall business development efforts, strengthens our financial position at a time when we believe the Company has a number of important business catalysts and milestones ahead.”
About Captivision
Captivision is the inventor and manufacturer of the world’s first media glass combining IT building material and architectural glass. The product has a boundless array of applications including entertainment media, information media, cultural and artistic content as well as marketing use cases. Captivision can transform any glass façade into a transparent media screen with real time live stream capability.
Captivision’s media glass and solutions have been implemented in hundreds of locations globally across sports stadiums, entertainment venues, casinos and hotels, convention centers, office and retail properties and airports. Learn more at http://www.captivision.com/.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include, without limitation, statements relating to expectations for future financial performance, business strategies or expectations for the Company’s respective businesses. These statements are based on the beliefs and assumptions of the management of the Company. Although the Company believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, it cannot assure you that it will achieve or realize these plans, intentions or expectations. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this press release, words such as “believe”, “can”, “continue”, “expect”, “forecast”, “may”, “plan”, “project”, “should”, “will” or the negative of such terms, and similar expressions, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The risks and uncertainties include, but are not limited to: (1) the ability to raise financing in the future and to comply with restrictive covenants related to indebtedness; (2) the ability to realize the benefits expected from the business combination and the Company’s strategic direction; (3) the significant market adoption, demand and opportunities in the construction and digital out of home media industries for the Company’s products; (4) the ability to maintain the listing of the Company’s ordinary shares and warrants on Nasdaq; (5) the ability of the Company to remain competitive in the fourth generation architectural media glass industry in the face of future technological innovations; (6) the ability of the Company to execute its international expansion strategy; (7) the ability of the Company to protect its intellectual property rights; (8) the profitability of the Company’s larger projects, which are subject to protracted sales cycles; (9) whether the raw materials, components, finished goods and services used by the Company to manufacture its products will continue to be available and will not be subject to significant price increases; (10) the IT, vertical real estate and large format wallscape modified regulatory restrictions or building codes; (11) the ability of the Company’s manufacturing facilities to meet their projected manufacturing costs and production capacity; (12) the future financial performance of the Company; (13) the emergence of new technologies and the response of the Company’s customer base to those technologies; (14) the ability of the Company to retain or recruit, or to effect changes required in, its officers, key employees or directors; (15) the ability of the Company to comply with laws and regulations applicable to its business; and other risks and uncertainties set forth under the section of the Company’s Annual Report on Form 20-F entitled “Risk Factors.”
These forward-looking statements are based on information available as of the date of this press release and the Company’s management team’s current expectations, forecasts and assumptions, and involve a number of judgments, known and unknown risks and uncertainties and other factors, many of which are outside the control of the Company and its directors, officers and affiliates. Accordingly, forward-looking statements should not be relied upon as representing the Company management team’s views as of any subsequent date. The Company does not undertake any obligation to update, add or to otherwise correct any forward-looking statements contained herein to reflect events or circumstances after the date they were made, whether as a result of new information, future events, inaccuracies that become apparent after the date hereof or otherwise, except as may be required under applicable securities laws.
Media Contact:
Dukas Linden Public Relations
T: 212-704-7385
captivision@dlpr.com
Investor Contact:
Gateway Group
Ralf Esper
T: 949-574-3860
CAPT@gateway-grp.com
FAQ
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