Gorilla Technology Closes ATM Programme, Reinforcing Commitment to Shareholder Value

Rhea-AI Summary

Gorilla Technology Group (NASDAQ: GRRR) has announced the formal closure of its At-The-Market (ATM) programme, marking a significant step in its commitment to protect shareholder value and prevent further dilution. This strategic decision follows the company's previous share buyback initiative and reflects confidence in its financial strength and growth prospects.

CEO Jay Chandan emphasized the company's dedication to preventing dilution and maintaining shareholder value, stating that Gorilla's focus remains on execution, revenue expansion, and delivering long-term value to investors.

Positive

• Formal closure of ATM program eliminates risk of share dilution
• Previous share buyback initiative demonstrates commitment to shareholder value
• Company signals strong financial position and revenue visibility

Negative

• None.

Insights

Financial Analyst

The closure of Gorilla Technology's ATM program marks a decisive shift in capital management strategy that warrants investor attention. This move, coupled with their previous share buyback initiative, signals two critical developments:

First, it demonstrates management's conviction in their current cash position and future cash flow generation capabilities. Companies typically maintain ATM programs as a financial safety net and voluntarily closing one suggests robust confidence in their operational outlook and existing capital resources.

Second, this decision creates a self-imposed constraint that effectively forces management to optimize operational efficiency and cash flow management. Without easy access to equity markets, the company must maintain stricter fiscal discipline, potentially leading to:

• Enhanced focus on operational cash flow generation
• More strategic capital allocation decisions
• Increased emphasis on working capital optimization

However, investors should note that while this move protects against dilution, it also reduces financial flexibility. In the current high-interest rate environment, companies typically prefer maintaining multiple funding options. Gorilla's willingness to forgo this flexibility suggests strong confidence in their business model and future revenue streams.

The timing of this announcement, following their share buyback program, creates a compelling narrative of shareholder-friendly capital management. This could potentially lead to a re-rating of the stock as it may attract value investors who prioritize companies with strong shareholder return policies.

London, United Kingdom--(Newsfile Corp. - February 10, 2025) - Gorilla Technology Group Inc. (NASDAQ: GRRR) ("Gorilla" or the "Company") today announces the formal closure of its At-The-Market (ATM) programme, reaffirming its unwavering commitment to protecting shareholder value and ensuring no further dilution.

Following its bold share buyback initiative, Gorilla continues to prioritise shareholder interests by eliminating any potential market concerns about stock dilution. This strategic move underscores the company's confidence in its financial strength, revenue visibility and long-term growth trajectory.

Jay Chandan, Chairman & CEO of Gorilla Technology, stated: "We made a commitment to our shareholders that we would not dilute and we are standing by that promise. By closing our ATM programme, we are ensuring that shareholder value remains protected while reinforcing our position as a disciplined and strategic company. Our focus remains on strong execution, revenue expansion and delivering long-term value to our investors."

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 execute definitive agreements related to this smart education project, 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/240233

FAQ

What impact does GRRR's ATM program closure have on shareholders?

The closure of GRRR's ATM program prevents future share dilution, protecting existing shareholder value and demonstrating the company's commitment to maintaining stock value.

When did Gorilla Technology (GRRR) announce the closure of its ATM program?

Gorilla Technology announced the closure of its ATM program on February 10, 2025.

How does the ATM closure align with GRRR's previous share buyback initiative?

The ATM closure complements GRRR's previous share buyback initiative, reinforcing the company's strategy to protect shareholder value and prevent dilution.

What is Gorilla Technology's (GRRR) strategy for maintaining shareholder value in 2025?

GRRR's strategy includes closing the ATM program, preventing dilution, focusing on revenue expansion, and maintaining strong execution for long-term value creation.