Damon Inc. Announces Closing of Upsized $16.5 Million Underwritten Public Offering

Rhea-AI Summary

Damon Inc. (NASDAQ: DMN) has successfully closed its upsized public offering, raising $16.5 million in gross proceeds through the sale of 126.9 million units at $0.13 per unit. Each unit includes one common share and one Series A warrant to purchase one common share.

The underwriter, Maxim Group , partially exercised its overallotment option, purchasing an additional 19,035,000 Series A warrants at $0.001 per warrant, generating additional gross proceeds of $19,035.

The company plans to use the proceeds to support its next growth phase, focusing on accelerating revenue generation through proprietary technologies, data intelligence, user-driven design, and strategic partnerships. CEO Dom Kwong emphasized that this financing strengthens their balance sheet and enables the execution of their multi-vertical revenue strategy, including safety systems and electrification technology development.

Positive

• Secured $16.5 million in gross proceeds to strengthen balance sheet
• Additional funding enables execution of multi-vertical revenue strategy
• Asset-light business model through strategic partnerships

Negative

• Significant shareholder dilution with 126.9 million new units issued
• Low unit pricing at $0.13 indicates potential market weakness
• Additional dilution potential from Series A warrants

Insights

Financial Analyst

Damon's $16.5 million public offering represents a significant capital injection for a company with a mere $1.24 million market cap. This striking 13:1 ratio of financing to market value signals both opportunity and substantial shareholder dilution.

The offering structure reveals crucial details: units priced at $0.13 versus the current share price of $0.0373, suggesting a 248% premium to market. This unusual premium pricing could indicate stronger investor confidence than the market currently reflects, or possibly complex warrant terms driving the valuation.

With 126.9 million new units issued, the massive dilution is unavoidable, though potentially justified if management successfully deploys capital toward immediate revenue generation as promised. The overallotment exercise for warrants but not shares suggests institutional caution about near-term value.

The company's focus on "multiple potential revenue verticals" and "asset-light business model" indicates a strategic pivot from being purely a product company to potentially licensing proprietary technologies, which could offer higher margins and more sustainable growth if executed properly.

This financing dramatically transforms Damon's financial position but creates substantial pressure to accelerate commercialization of their technologies to justify the dilution and premium pricing structure.

Transaction Strengthens Balance Sheet and Enables Execution of Multi-Vertical Revenue Strategy

VANCOUVER, BC, March 21, 2025 /PRNewswire/ - Damon Inc. (NASDAQ: DMN) ("Damon" or the "Company"), a designer and developer of electric motorcycles and other personal mobility products that seek to empower the personal mobility sector through innovation, data intelligence and strategic partnerships, today announced the closing of its previously announced public offering of 126,900,000 units at a public offering price of $0.13 per unit. Each unit consisted of one common share and one Series A warrant to purchase one common share, subject to adjustment in accordance with its terms. In addition, the Company granted the underwriters a 45-day option to purchase up to an additional 19,035,000 common shares at a price per share equal to the public offering price per unit (net of discounts and commissions) minus $0.001, and/or 19,035,000 Series A warrants at a price of $0.001 per warrant, to cover over-allotments.

Gross proceeds to the Company, before deducting underwriting commissions and other offering expenses, were approximately $16.5 million. The proceeds of this offering will support Damon's next phase of growth, focused on accelerating revenue generation through its proprietary technologies, data intelligence, user-driven design and strategic partnerships.

"This financing marks a pivotal moment for Damon, providing the financial foundation needed to advance our mission in sustainable mobility," said Dom Kwong, CEO of Damon Inc. "This transaction strengthens our balance sheet and provides us with the resources needed to execute our business plan with confidence. It will also enable us to focus on multiple potential revenue verticals—including our proprietary safety systems and electrification technology—and to leverage an asset-light business model through strategic partnerships, positioning us strongly for long-term value creation."

Maxim Group LLC acted as sole book-runner in connection with the offering. In connection with the offering, the underwriter partially exercised its overallotment option and purchased an additional 19,035,000 Series A warrants at $0.001 per warrant for additional gross proceeds of $19,035.

A registration statement on Form S-1 (File No. 333-285872) was filed with the U.S. Securities and Exchange Commission ("SEC") and was declared effective by the SEC on March 20, 2025 (the "registration statement"). A final prospectus relating to the offering was filed with the SEC and is available on the SEC's website at http://www.sec.gov. The offering was made only by means of a prospectus forming part of the effective registration statement. Electronic copies of the prospectus relating to this offering may also be obtained from Maxim Group LLC, 300 Park Avenue, 16th Floor, New York, New York 10022, Attention: Syndicate Department, by telephone at (212) 895-3745 or by email at syndicate@maximgrp.com.

This press release shall not constitute an offer to sell or a 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 other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Damon Inc.

Damon Inc. is a designer and developer of personal mobility products and technology solutions that integrate AI-driven safety systems, smart electrification, and user-driven design to revolutionize sustainable transportation. Operating across four potential revenue verticals - Data Intelligence & Services, Engineering Services, Personal Mobility Products, and Special Projects – Damon believes it is positioned to capture a significant share of the $40B global electric two-wheeler market by 2030¹. The company distinguishes itself through its integrated ecosystem approach, combining advanced data analytics, engineering expertise, and strategic partnerships with OEMs and Tier 1 suppliers. Damon emphasizes accessible mobility solutions while leveraging its proprietary AI-driven safety systems and intelligent energy management technology to deliver superior performance and operational efficiency in the urban and business mobility space. For more information, please visit damon.com.

1 Source McKinsey Report on Micromobility (2022)

Forward Looking Statements

Forward-looking statements in this press release include, but are not limited to, statements relating to our strategic initiatives, revenue expansion plans, business model evolution, and expected efficiency improvements and growth. In developing the forward-looking statements in this press release, we have applied several material assumptions, including the general business and economic conditions of the industries and countries in which Damon operates, and general market conditions. Many risks, uncertainties, and other factors could cause the actual results of Damon to differ materially from the results, performance, achievements, or developments expressed or implied by such forward-looking statements. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to, our history of losses, our ability to implement our growth strategy and achieve profitability, our limited operating history with recent acquisitions, our ability to obtain adequate financing as needed, our ability to continue as a going concern, our status as a foreign private issuer, our ability to maintain compliance with Nasdaq's continued listing requirements, customer demand for or acceptance of our products and services, the impact of competitive or alternative products, technologies, and pricing, emerging competition and rapidly advancing technology that may outpace our own, our ability to manufacture or distribute products and secure strategic supply and manufacturing arrangements, our ability to protect our intellectual property, impact of any changes in existing or future regulatory and tax regimes applying to our business, our ability to successfully consummate strategic transactions and integrate companies or technologies we acquire, our ability to attract and retain management and employees with specialized knowledge and technical skills, our ability to develop and maintain effective internal controls, general economic conditions and events and the impact they may have on us and our customers, including but not limited to increases in inflation rates and rates of interest, supply chain challenges, increased costs for materials and labor, cybersecurity threats, and conflicts such as those in Russia/Ukraine and Israel/Hamas, our success at managing the risks involved in the foregoing items, and other risk factors discussed in our periodic and current reports and registration statements filed with the U.S. Securities and Exchange Commission and the British Columbia Securities Commission.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of the press release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, events may differ materially from current expectations. Damon disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required pursuant to applicable securities law. All forward-looking statements contained in the press release are expressly qualified in their entirety by this cautionary statement.

View original content to download multimedia:https://www.prnewswire.com/news-releases/damon-inc-announces-closing-of-upsized-16-5-million-underwritten-public-offering-302408393.html

SOURCE DAMON Motors Inc.

FAQ

How much did Damon Inc. (DMN) raise in their March 2025 public offering?

Damon Inc. raised $16.5 million in gross proceeds through the sale of 126.9 million units at $0.13 per unit, plus an additional $19,035 from overallotment warrants.

What does each unit in DMN's public offering include?

Each unit consists of one common share and one Series A warrant to purchase one common share, priced at $0.13 per unit.

How will DMN use the proceeds from the March 2025 offering?

The proceeds will support Damon's growth phase, focusing on revenue generation through proprietary technologies, data intelligence, and strategic partnerships.

What was the overallotment option exercise in DMN's public offering?

The underwriter partially exercised its overallotment option by purchasing 19,035,000 Series A warrants at $0.001 per warrant.