Gorilla Technology Announces Updated Share Count, Proceeds from Warrant Exercises, and Strengthened Market Position

Rhea-AI Summary

Gorilla Technology Group (NASDAQ: GRRR) has announced key updates to its share structure and financial position as of January 3, 2025. The company reports 18,464,651 ordinary shares outstanding, following the complete conversion of all preference shares and the exercise of 2,663,750 Series A, B, and C warrants.

The warrant exercises generated over $15.7 million in fresh capital for the company. Based on the January 2, 2025 closing price of $24.33 per share, Gorilla's market capitalization stands at approximately $449.2 million.

According to CFO Bruce Bower, these developments reflect strong investor confidence and will enable the company to accelerate strategic initiatives and enhance its ability to deliver innovative solutions to global customers.

Positive

• Raised $15.7 million in fresh capital from warrant exercises
• Market capitalization of $449.2 million as of January 2, 2025
• Complete conversion of preference shares, simplifying capital structure

Negative

• None.

Insights

Financial Analyst

The $15.7 million cash infusion from warrant exercises significantly strengthens Gorilla Technology's balance sheet. The conversion of preference shares and warrants simplifies the capital structure, making the stock more attractive to institutional investors. With $449.2 million market cap and 18,464,651 shares outstanding, the company has enhanced its financial flexibility. However, the warrant exercises have led to share dilution of approximately 14.4% (2,663,750 new shares), which could pressure the stock price in the near term. The fresh capital provides runway for strategic growth initiatives, but investors should monitor the deployment of these funds and execution of the company's business plan.

For retail investors unfamiliar with warrants: Think of them like coupons that give the holder the right to buy shares at a set price. When warrant holders exercise them, they pay the company to get new shares, which brings in cash but also increases the total number of shares outstanding - similar to a company printing new money.

Market Research Analyst

The warrant exercises at Gorilla Technology signal strong investor confidence, particularly given the substantial premium to the recent share price. The complete conversion of preference shares to ordinary shares removes the complex layers in the capital structure, potentially making the stock more appealing to a broader investor base. Market sentiment appears positive, reflected in the $24.33 share price.

For the average investor: This is like upgrading from a complicated multi-class voting system to a simple one-share, one-vote structure. The fact that warrant holders were willing to pay to convert their "stock options" into actual shares suggests they believe the company's value will continue to grow. The simplified structure makes it easier for new investors to understand their ownership stake and rights in the company.

London, United Kingdom--(Newsfile Corp. - January 6, 2025) - Gorilla Technology Group Inc. (NASDAQ: GRRR) ("Gorilla" or the "Company"), today announced its updated share count, proceeds from recent warrant exercises, and an update on its market capitalisation.

As of January 3, 2025, Gorilla has 18,464,651 ordinary shares outstanding. This reflects the full conversion of all preference shares, as well as the exercise of a combined total of 2,663,750 Series A, Series B, and Series C warrants. The Company has received over $15.7 million in fresh cash from the holders of these warrants in connection with their exercise.

Based on the closing market share price of $24.33 (as of January 2, 2025), Gorilla's updated market capitalisation stands at approximately $449.2 million.

Bruce Bower, Chief Financial Officer of Gorilla Technology, commented: "These milestones are a testament to the strong confidence our investors place in Gorilla's vision and growth trajectory. The additional proceeds further bolster our financial position, enabling us to accelerate strategic initiatives and strengthen our ability to deliver innovative solutions to our global customers. With a solid balance sheet and continued momentum, we believe we are well-positioned for long-term success."

About Gorilla Technology Group Inc.

Headquartered in London U.K., Gorilla is a global solution provider in Security Intelligence, Network Intelligence, Business Intelligence and IoT technology. We provide a wide range of solutions, including, Smart City, Network, Video, Security Convergence and IoT, across select verticals of Government & Public Services, Manufacturing, Telecom, Retail, Transportation & Logistics, Healthcare and Education, by using AI and Deep Learning Technologies.

Our expertise lies in revolutionizing urban operations, bolstering security and enhancing resilience. We deliver pioneering products that harness the power of AI in intelligent video surveillance, facial recognition, license plate recognition, edge computing, post-event analytics and advanced cybersecurity technologies. By integrating these AI-driven technologies, we empower Smart Cities to enhance efficiency, safety and cybersecurity measures, ultimately improving the quality of life for residents.

For more information, please visit our website: Gorilla-Technology.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Gorilla's actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "might" and "continues," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, statements regarding our beliefs about our ability to service our customers, to finance additional projects, to attract the attention of customers and win additional projects, along with those other risks described under the heading "Risk Factors" in the Form 20-F Gorilla filed with the Securities and Exchange Commission (the "SEC") on May 15, 2024 and those that are included in any of Gorilla's future filings with the SEC. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Most of these factors are outside of the control of Gorilla and are difficult to predict. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Gorilla undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made except as required by law or applicable regulation.

Investor Relations Contact:

Dave Gentry
RedChip Companies, Inc.
1-407-644-4256
GRRR@redchip.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/236122

FAQ

How many shares does Gorilla Technology (GRRR) have outstanding as of January 2025?

As of January 3, 2025, Gorilla Technology has 18,464,651 ordinary shares outstanding.

How much capital did GRRR raise from warrant exercises in January 2025?

Gorilla Technology raised over $15.7 million from the exercise of Series A, B, and C warrants.

What is Gorilla Technology's (GRRR) market capitalization as of January 2025?

Based on the closing price of $24.33 on January 2, 2025, Gorilla Technology's market capitalization is approximately $449.2 million.

How many warrants were exercised in Gorilla Technology's (GRRR) January 2025 update?

A total of 2,663,750 Series A, Series B, and Series C warrants were exercised.