Gorilla Announces $12 Million Registered Direct Offering
Gorilla Technology Group announces a $12 million registered direct offering. The company entered into agreements with institutional investors to sell 2,142,858 ordinary shares and warrants at $5.60 per share. The warrants, priced at $5.90 per share, are immediately exercisable and expire in five years. The gross proceeds are intended for working capital needs, with closing expected around June 10, 2024. The offering follows a shelf registration statement filed in August 2023 and declared effective by the SEC. A.G.P./Alliance Global Partners is the sole placement agent. Additionally, Gorilla agreed to reduce the exercise price of outstanding Series A and B warrants from previous offerings to $5.90 per share.
- Gorilla Technology Group secures $12 million in gross proceeds from the offering.
- Shares and warrants priced competitively at $5.60 and $5.90 respectively, reflecting investor confidence.
- Proceeds intended for working capital needs, potentially improving financial stability.
- Warrants are immediately exercisable, enhancing liquidity options.
- Offering results in potential share dilution with the issuance of 2,142,858 new shares.
- Exercise price reduction for Series A and B warrants may impact existing warrant holders' value.
- Placement agent fees and offering expenses will reduce net proceeds below $12 million.
- Increased number of shares and warrants may exert downward pressure on stock price.
Insights
Gorilla Technology Group Inc.'s recent announcement of a
The exercise price of
Gorilla plans to use the net proceeds for working capital, suggesting a focus on maintaining or expanding operations. However, the reliance on equity financing can indicate either strategic expansion or potential cash flow challenges. Investors should consider the company's current financial health and operational efficiencies to determine the appropriateness of such financing.
Short-term, this might dilute existing shareholders' equity, leading to possible stock price volatility. Long-term, if the capital is effectively utilized, it could foster growth and stability.
The decision to enter into a registered direct offering with existing institutional investors signals strong institutional support for Gorilla Technology Group Inc. This type of offering is often seen as a positive indicator, suggesting that well-informed investors believe in the company's potential.
By offering shares and warrants, the company is allowing investors to purchase shares at a fixed price now, with the potential for gaining additional shares in the future at a set price. This is appealing in a volatile market as it provides a clearer investment strategy for stakeholders.
However, it’s important to note that the reduction in the exercise price of existing warrants to
LONDON, June 07, 2024 (GLOBE NEWSWIRE) -- Gorilla Technology Group Inc. (“Gorilla” or the “Company”) (NASDAQ: GRRR), a global solution provider in Security Intelligence, Network Intelligence, Business Intelligence, and IoT technology, today announced that it has entered into securities purchase agreements with existing institutional investors for the purchase and sale of 2,142,858 ordinary shares of the Company and warrants to purchase up to 2,142,858 ordinary shares pursuant to a registered direct offering (the “Offering”) at a combined purchase price of
Gorilla intends to use the net proceeds from the Offering for working capital needs. The closing of the Offering is expected to occur on or about June 10, 2024, subject to the satisfaction of customary closing conditions.
A.G.P./Alliance Global Partners is acting as the sole placement agent for the Offering.
The securities described above are being offered pursuant to a shelf registration statement on Form F-3 (File No. 333-274053) that was filed with the Securities and Exchange Commission (the “SEC”) on August 17, 2023 and declared effective by the SEC on August 29, 2023. The Offering is being made by means of a prospectus, including a prospectus supplement, that form part of the registration statement. A final prospectus supplement and accompanying prospectus relating to the Offering will be filed with the SEC. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained, when available, from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.com.
In connection with the Offering, the Company has agreed to reduce the exercise price of its outstanding Series A ordinary share purchase warrants and Series B ordinary share purchase warrants, to purchase up to 2,825,000 ordinary shares, that were issued to the existing institutional investors in the Company's previous registered direct offerings in September 2023 and February 2024, to
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.
Investor Relations Contact:
Cody Fletcher
The Blueshirt Group for Gorilla
+1 (434) 251-7165
gorilla@blueshirtgroup.co
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