Ispire Technology Announces Pricing of $12.3 Million Public Offering

Rhea-AI Summary

Ispire Technology Inc. (ISPR) announces a public offering of 2,050,000 shares of common stock at $6.00 per share, generating $12.3 million in gross proceeds. The offering aims to fund the company's research, development, and commercialization efforts in the e-cigarettes and cannabis vaping products market.

Insights

Financial Analyst

The offering of 2,050,000 shares by Ispire Technology Inc. at $6.00 per share is a strategic move to raise capital, amounting to $12.3 million in gross proceeds. This influx of capital can significantly impact the company's ability to scale operations, invest in R&D and potentially reduce debt. From an investment perspective, the pricing of the shares is pivotal. At $6.00, it reflects the market's current valuation of the company, which investors will scrutinize in relation to its peers and the broader industry performance.

Investors should consider the dilutive effect of the new shares on existing shareholders. While dilution can be a concern, the capital raised may lead to growth that could offset the potential negative impact on the stock price. The use of proceeds is another critical factor. If the capital is allocated towards high-growth initiatives, it could lead to an increase in shareholder value over time.

Market Research Analyst

The e-cigarette and cannabis vaping markets are rapidly evolving with changing regulations and consumer preferences. Ispire Technology's public offering suggests a bullish stance on their market position and future growth prospects. The capital raised could enable the company to adapt to regulatory changes, expand into new markets, or enhance its product portfolio to meet consumer demands.

However, the market's response to such an offering will depend on the perceived value of the investment and the company's execution of its growth strategies. Competitive analysis and consumer trends will be essential in assessing the potential returns from this capital raise. Investors will be keen to monitor the company's performance metrics post-offering to gauge the effectiveness of their investment strategies.

Legal Expert

For Ispire Technology, navigating the legal landscape is as important as the financial implications of the public offering. The e-cigarette and cannabis sectors are subject to stringent regulations that can affect business operations. The company's compliance with these regulations and its ability to manage legal risks will be critical in determining its long-term success.

Investors should be aware of the potential legal costs associated with this industry. The capital raised may need to be partially allocated to legal defenses or compliance measures, which could impact the return on investment. The company's legal track record and its strategies for managing regulatory challenges should be carefully evaluated when considering the implications of this public offering.

LOS ANGELES, March 22, 2024 /PRNewswire/ --  Ispire Technology Inc. ("Ispire" or the "Company") (NASDAQ: ISPR), a leader in the research and development, design, commercialization, sales, marketing and distribution of branded e-cigarettes and cannabis vaping products, today announced the pricing of a public offering of 2,050,000 shares of common stock at a price of $6.00 per share for gross proceeds of $12,300,000, prior to deducting the placement agent fees and expected offering expenses payable by the Company. The closing of the offering is expected to take place on or about March 26, 2024, subject to the satisfaction or waiver of customary closing conditions.

Roth Capital Partners acted as the lead placement agent for the offering.  TFI Securities and Futures Limited acted as co-placement agent for the offering.

The Company intends to use the net proceeds of the offering in connection with the establishment and operation of its manufacturing facility in Malaysia, the funding of its joint venture with Touch Point Worldwide Inc. d/b/a Berify and Chemular Inc. if the definitive documentation contemplated by the previously announced amended term sheet and letter of intent is executed before the related drop dead date, and for working capital and general corporate purposes, including research and development.

The shares described above were offered pursuant to a registration statement on Form S-1 (File No. 333-276804), which was declared effective by the United States Securities and Exchange Commission ("SEC") on March 21, 2024. A final prospectus relating to the offering will be filed by the Company with the SEC. When available, copies of the final prospectus can be obtained at the SEC's website at www.sec.gov or from Roth Capital Partners, LLC , 888 San Clemente Drive, Suite 400, Newport Beach, CA 92660, (800) 678-9147.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor will there be any sales 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 such state or jurisdiction.

About Ispire Technology Inc.

Ispire is engaged in the research and development, design, commercialization, sales, marketing, and distribution of branded e-cigarettes and cannabis vaping products. The Company's operating subsidiaries own or license more than 200 patents received or filed globally. Ispire's tobacco products are marketed under the Aspire brand name and are sold worldwide (except in the U.S., People's Republic of China and Russia) primarily through its global distribution network. The Company's cannabis products are marketed under the Ispire brand name primarily on an original design manufacturer (ODM) basis to other cannabis vapor companies. Ispire sells its cannabis vaping hardware only in the U.S., and it recently commenced its marketing activities in Canada and Europe. For more information, visit www.ispiretechnology.com or follow Ispire on  Instagram, LinkedIn, Facebook, Twitter and YouTube.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act") as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "will," "should," "would," "could," "seek," "intend," "plan," "goal," "project," "estimate," "anticipate," "strategy," "future," "likely" or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the expected closing date of the public offering and the Company's strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements are subject to risk and uncertainties, including, but not limited to, market conditions, the ability of the Company to satisfy the conditions to the closing of the offering, and those described in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Cautionary Note on Forward-Looking Statements" in the Registration Statement on Form S-1, as amended, initially filed with the SEC (Reg. No. 333-276804) on February 1, 2024 and any subsequent filings which Ispire makes with the U.S. Securities and Exchange Commission. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in the press release relate only to events or information as of the date on which the statements are made in the press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

Contact:
 For more information, kindly contact:
 Investor Relations
 Sherry Zheng
 718.213.7386
 ir@ispiretechnology.com 

Ellen Mellody
570-209-2947
EMellody@kcsa.com

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SOURCE Ispire Technology Inc.

FAQ

What is the ticker symbol for Ispire Technology Inc.?

The ticker symbol for Ispire Technology Inc. is ISPR.

How many shares of common stock were offered in the recent public offering by Ispire Technology Inc.?

Ispire Technology Inc. offered 2,050,000 shares of common stock in the recent public offering.

At what price were the shares of common stock offered by Ispire Technology Inc.?

The shares of common stock were offered by Ispire Technology Inc. at a price of $6.00 per share.

What is the gross proceeds generated from the public offering by Ispire Technology Inc.?

The public offering by Ispire Technology Inc. generated gross proceeds of $12,300,000.

What is the purpose of the public offering announced by Ispire Technology Inc.?

The public offering aims to fund the company's research, development, and commercialization efforts in the e-cigarettes and cannabis vaping products market.