Crown Announces Suspension of Equity Line of Credit
Crown Electrokinetics (NASDAQ: CRKN) has announced the suspension of its Equity Line of Credit (ELOC) agreement with Liqueous LP. The company had made an initial, modest use of the ELOC but decided to suspend it as it's no longer deemed necessary for their current financing strategy. Crown continues to generate revenue from its Fiber Optics and Water Solutions businesses, including U.S. fiber optics networks construction, slant wells in Los Cabos, and water service line inspection projects. The company maintains the flexibility to reinstate the ELOC as conditions warrant.
Crown Electrokinetics (NASDAQ: CRKN) ha annunciato la sospensione del suo contratto di Equity Line of Credit (ELOC) con Liqueous LP. L'azienda aveva effettuato un iniziale utilizzo modesto dell'ELOC, ma ha deciso di sospenderlo poiché non è più considerato necessario per la loro attuale strategia di finanziamento. Crown continua a generare entrate dalle sue attività di Fiber Optics and Water Solutions, tra cui la costruzione di reti in fibra ottica negli Stati Uniti, i pozzi inclinati a Los Cabos e i progetti di ispezione delle linee di servizio idrico. L'azienda mantiene la flessibilità di ripristinare l'ELOC quando le condizioni lo richiedono.
Crown Electrokinetics (NASDAQ: CRKN) ha anunciado la suspensión de su acuerdo de Línea de Crédito de Capital (ELOC) con Liqueous LP. La compañía había hecho un uso inicial modesto de la ELOC, pero decidió suspenderlo ya que ya no se considera necesario para su estrategia de financiamiento actual. Crown continúa generando ingresos de sus negocios de Fiber Optics and Water Solutions, que incluyen la construcción de redes de fibra óptica en EE.UU., pozos inclinados en Los Cabos y proyectos de inspección de líneas de servicio de agua. La compañía mantiene la flexibilidad para restablecer la ELOC según sea necesario.
Crown Electrokinetics (NASDAQ: CRKN)은 Liqueous LP와의 자본금 신용 라인(ELOC) 계약을 중단한다고 발표했습니다. 회사는 초기에는 ELOC를 조금 사용했지만 현재 자금 조달 전략에 더 이상 필요하지 않다고 판단하여 이를 중단하기로 결정했습니다. Crown은 미국 내 광섬유 네트워크 건설, 로스 카보스의 경사井 및 급수 서비스 라인 점검 프로젝트를 포함하여 Fiber Optics and Water Solutions 사업에서 수익을 계속 창출하고 있습니다. 회사는 조건이 요구될 경우 ELOC를 다시 활성화할 수 있는 유연성을 유지합니다.
Crown Electrokinetics (NASDAQ: CRKN) a annoncé la suspension de son accord de Ligne de Crédit en Équité (ELOC) avec Liqueous LP. La société avait fait un usage initial modeste de l'ELOC, mais a décidé de le suspendre car il n'est plus jugé nécessaire pour sa stratégie de financement actuelle. Crown continue de générer des revenus grâce à ses activités Fiber Optics and Water Solutions, notamment la construction de réseaux de fibre optique aux États-Unis, les puits inclinés à Los Cabos et des projets d'inspection des lignes de service d'eau. L'entreprise conserve la flexibilité de rétablir l'ELOC si les conditions l'exigent.
Crown Electrokinetics (NASDAQ: CRKN) hat die Aussetzung seiner Vereinbarung über die Equity Line of Credit (ELOC) mit Liqueous LP bekannt gegeben. Das Unternehmen hatte zunächst einen bescheidenen Gebrauch der ELOC gemacht, entschloss sich jedoch zur Aussetzung, da es für die aktuelle Finanzierungsstrategie nicht mehr als notwendig erachtet wird. Crown generiert weiterhin Einnahmen aus seinen Geschäftsbereichen Fiber Optics and Water Solutions, zu denen der Bau von Glasfasernetzwerken in den USA, geneigte Brunnen in Los Cabos und Projekte zur Inspektion von Wasseranschlussleitungen gehören. Das Unternehmen bleibt flexibel, um die ELOC bei Bedarf wiederherzustellen.
- Revenue generation from multiple business segments (Fiber Optics and Water Solutions)
- Multiple active contracts in fiber optics and water infrastructure
- Flexibility to reinstate ELOC if needed
- Recent use of ELOC indicates previous need for additional funding
- Suspected naked short selling activity affecting the stock
Insights
The suspension of the Equity Line of Credit (ELOC) with Liqueous LP signals a significant shift in Crown's financial strategy. The company's decision to halt the ELOC after minimal usage suggests improved financial confidence, potentially stemming from their revenue streams in fiber optics and water solutions contracts. However, the mention of "suspected naked short activity" raises concerns about market manipulation affecting the stock's performance.
The company's diversified revenue streams from U.S. fiber optics networks, Los Cabos slant wells and lead pipe inspection services provide multiple growth channels. While suspending the ELOC reduces financial flexibility, it also minimizes potential shareholder dilution. The retention of the option to reinstate the ELOC maintains a safety net while demonstrating management's commitment to shareholder value.
LOS ANGELES, Nov. 05, 2024 (GLOBE NEWSWIRE) -- Crown Electrokinetics Corp. (NASDAQ: CRKN) ("Crown" or the "Company”), a leading provider of cutting edge technology solutions that benefit communities and the environment, today announced that it has suspended the use of its Equity Line of Credit (ELOC) agreement with Liqueous LP.
“Recently, Crown had an initial, modest use of the ELOC, but has now made the decision to suspend its use. We established the ELOC to complement our existing capital options and provide flexibility to cover any funding gaps. However, at this time, we no longer deem it necessary to support our current financing strategy and strengthened outlook,” stated Doug Croxall, CEO and Chairman, Crown. “At Crown, we are dedicated to protecting shareholder value and have consulted with professionals before taking the necessary, albeit limited, steps to address the impact of suspected naked short activity. The timely decision to suspend our use of the ELOC reflects our commitment to our shareholders.”
“Our business outlook is strong. Crown continues to drive revenue from its Fiber Optics and Water Solutions businesses from contracts including the construction of U.S. fiber optics networks, the construction of slant wells in Los Cabos, Mexico, and Element 82’s water service line inspection for lead pipes. In addition, our most recent contract includes PE Pipelines’ services for replacing lead-based water service lines,” concluded Mr. Croxall.
Use of the ELOC is at the Company’s sole discretion, and the Company has the flexibility to reinstate it as conditions warrant. The Company intends to update the market if, and when, the Company determines to start utilizing the ELOC once again.
About Crown
Crown (Nasdaq: CRKN) is an innovative solutions provider dedicated to benefiting communities and the environment. Comprised of three business divisions, Smart Windows, Fiber Optics, and Water Solutions, Crown is developing and delivering cutting edge solutions that are challenging the status quo and redefining industry standards. For more information, please visit www.crownek.com.
Forward Looking Statements
Certain statements in this news release may be "forward-looking statements" (within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995) regarding future events or Crown’s future financial performance that involve certain contingencies and uncertainties, including those discussed in Crown’s Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent reports Crown files with the U.S. Securities and Exchange Commission from time to time, in the sections entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions, or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and Crown Electrokinetic Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.
This press release does not constitute a public offer of any securities for sale. Any securities offered privately will not be or have not been registered under the Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
For more information, please contact:
Investor Contact
info@crownek.com
FAQ
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