Focus Universal Inc. Announces Pricing of $1.2 Million Registered Direct Offering

Rhea-AI Summary

Focus Universal Inc. (NASDAQ:FCUV), an IoT and 5G technology provider, has announced a $1.2 million registered direct offering. The company will sell 3,750,000 shares of common stock at $0.32 per share to a single institutional investor. The offering is expected to close on September 17, 2024, subject to customary conditions. Univest Securities is acting as the placement agent, and Corporate Securities Legal LLP is serving as legal counsel. Proceeds will partly fund the development and launch of a new software product platform under Lusher Inc. The offering is made pursuant to an effective S-3 registration statement filed with the SEC.

Positive

• Secured $1.2 million in funding through registered direct offering
• Funds to be used for development and launch of new software product platform
• Transaction expected to close quickly, by September 17, 2024

Negative

• Potential dilution of existing shareholders due to issuance of 3,750,000 new shares
• Low share price of $0.32 may indicate market undervaluation or financial challenges

Insights

Financial Analyst

Focus Universal's $1.2 million registered direct offering, priced at $0.32 per share, represents a significant dilution for existing shareholders. The 20% discount to the current market price signals potential investor hesitancy. While the capital injection aims to support the development of Lusher Inc.'s software platform, the small offering size raises questions about the company's ability to secure more substantial funding. This could indicate challenges in scaling operations or investor confidence. The involvement of a single institutional investor, rather than a broader base, may also suggest market interest. Investors should closely monitor the company's ability to effectively utilize this capital for meaningful growth in the competitive IoT and 5G sectors.

Tech Expert

Focus Universal's move to raise capital for its software platform development under Lusher Inc. highlights the company's commitment to expanding its IoT and 5G technologies. However, the modest $1.2 million funding raises concerns about the scale and competitiveness of their initiatives. In the rapidly evolving IoT and 5G markets, substantial investments are typically required to create impactful solutions. This funding might restrict Focus Universal's ability to innovate at the pace necessary to stay relevant. Investors should carefully assess the company's technology roadmap and how this capital infusion aligns with industry trends and market demands in the IoT and 5G spaces.

Market Research Analyst

The pricing of Focus Universal's offering at $0.32 per share, significantly below the current market price, suggests a weak negotiating position and potential market skepticism. This could lead to a short-term stock price decline. The company's focus on IoT and 5G technologies places it in high-growth sectors, but the small offering size may limit its ability to capitalize on market opportunities. Investors should consider how this capital raise compares to industry peers and whether it's sufficient for meaningful product development. The involvement of a single institutional investor, while providing some validation, also concentrates risk. Monitor the company's progress in deploying this capital and any subsequent financial performance improvements to gauge the offering's long-term impact.

ONTARIO, CA / ACCESSWIRE / September 16, 2024 / Focus Universal Inc. (NASDAQ:FCUV) ("Focus" or the "Company"), a provider of patented hardware and software design technologies for Internet of Things (IoT) and 5G, today announced that it has entered into securities purchase agreements with a single institutional investor for the purchase and sale of 3,750,000 shares of common stock in a registered direct offering. The purchase price of each share is $0.32.

The aggregate gross proceeds to the Company are expected to be approximately $1.2 million. The transaction is expected to close on or about September 17, 2024, subject to the satisfaction of customary closing conditions. Proceeds from the offering will be used, in part, to continue to build and launch the new software product platform under Lusher Inc.

Univest Securities is acting as the placement agent for the Offering. Corporate Securities Legal LLP is acting as counsel to the Company for the offering.

A registration statement on Form S-3 (File No. 333-260180) relating to the offering of the securities was filed with the U.S. Securities and Exchange Commission (SEC) and declared effective by the SEC on November 16, 2021. The offering is being made only by means of a prospectus. A final prospectus supplement and accompanying prospectus describing the terms of the proposed transaction may be obtained, when available, on the SEC's website.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, 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 Focus Universal:

Focus Universal Inc. (NASDAQ:FCUV) is a provider of patented hardware and software design technologies for Internet of Things (IoT) and 5G. The company has developed five disruptive patented technology platforms with 28 patents and patents pending in various phases and 8 trademarks pending in various phases to solve the major problems facing hardware and software design and production within the industry today. These technologies combined to have the potential to reduce costs, product development timelines and energy usage while increasing range, speed, efficiency, and security. Focus currently trades on the Nasdaq Markets.

Forward-Looking Statements:

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and the completion of the public offering on the anticipated terms or at all, and other factors discussed in the "Risk Factors" section of the preliminary prospectus filed with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof and Focus Universal specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

For investor and media inquiries, please contact:

Skyline Corporate Communications Group, LLC
Lisa Gray
1177 Avenue of the Americas, 5th Floor
New York, NY 10036
Office: (646) 893-5835
info@skylineccg.com

For Company inquiries, please contact:

Investor Relations
626-272-3883
ir@focusuniversal.com

SOURCE: Focus Universal Inc.

View the original press release on accesswire.com

FAQ

What is the size and price of Focus Universal's (FCUV) recent stock offering?

Focus Universal (FCUV) is offering 3,750,000 shares of common stock at $0.32 per share, totaling approximately $1.2 million in a registered direct offering.

When is the closing date for Focus Universal's (FCUV) $1.2 million stock offering?

The $1.2 million stock offering by Focus Universal (FCUV) is expected to close on or about September 17, 2024, subject to customary closing conditions.

How will Focus Universal (FCUV) use the proceeds from its $1.2 million offering?

Focus Universal (FCUV) plans to use the proceeds, in part, to continue building and launching a new software product platform under Lusher Inc.

Who is the placement agent for Focus Universal's (FCUV) $1.2 million registered direct offering?

Univest Securities is acting as the placement agent for Focus Universal's (FCUV) $1.2 million registered direct offering.