KULR Announces Proposed Public Offering of Common Stock
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Insights
KULR Technology Group, Inc.'s announcement of an underwritten public offering to sell shares of its common stock is a strategic financial move with immediate implications for the company's capital structure and liquidity. The decision to potentially offer an additional 15% of shares to cover over-allotments is a common practice known as a 'greenshoe' option, which can stabilize the stock price post-offering. This event is significant for current and prospective shareholders, as it may dilute existing shares but also provides the company with capital to address its outstanding debts and support ongoing operations.
The use of proceeds to pay off existing financing facility debts suggests a proactive approach to managing the company's debt-to-equity ratio, which could be favorably viewed by investors seeking a company with a solid balance sheet. Allocating funds for working capital and general corporate purposes indicates an investment in the company's growth and operational efficiency. However, the offering's impact on the stock price will depend on market reception and the perceived value of the investment into the company's future.
Investors should monitor the terms of the offering once finalized, including the pricing of the shares, which will provide insight into market valuation. Additionally, the effectiveness of the shelf registration statement and the role of R.F. Lafferty & Co., Inc. as the sole book-running manager are key factors in the success of the offering. The market's response to this offering will be a critical indicator of investor confidence in KULR's business strategy and growth potential.
In the context of the sustainable energy management sector, KULR Technology Group's public offering can be seen as a move to strengthen its position in a highly competitive and capital-intensive industry. The company's focus on sustainable energy management solutions is timely, given the global push for environmentally friendly technologies and energy efficiency. The financial health and capital availability for companies like KULR are crucial for sustaining R&D efforts and scaling up operations to meet market demand.
Strategic use of the proceeds for working capital and general corporate purposes may enable KULR to invest in new technologies, expand its market reach, or improve existing products and services. This could enhance the company's competitive edge. However, the potential dilution of shares could be a concern for existing shareholders and the company's ability to manage this dilution through effective use of the capital raised will be closely watched by industry stakeholders.
It is also important to consider the broader market conditions, as they play a significant role in the success of public offerings. In a bullish market, the offering may be met with enthusiasm, whereas in a bearish market, it may face challenges. The timing and size of the offering, in relation to market conditions, are therefore critical elements that could affect not only the company but also the sustainable energy sector's funding landscape.
SAN DIEGO, Dec. 19, 2023 (GLOBE NEWSWIRE) -- KULR Technology Group, Inc. (NYSE American: KULR) (the "Company" or "KULR"), a global leader in sustainable energy management, today announced that it intends to offer and sell shares of its common stock in an underwritten public offering. All of the shares of common stock in the underwritten public offering are to be sold by the Company. The Company also expects to grant the underwriters a 30-day option to purchase up to an additional
The Company intends to use the net proceeds from the proposed offering to pay off certain amounts of the outstanding balance owed under its existing financing facility, as well as for working capital and general corporate purposes.
R.F. Lafferty & Co., Inc. is acting as the sole book-running manager for the offering.
The securities will be offered and sold pursuant to a shelf registration statement on Form S-3 (File No. 333-257697), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on July 6, 2021, and declared effective on July 13, 2021. The offering will be made only by means of a written prospectus. A preliminary prospectus supplement and accompanying prospectus describing the terms of the offering has been or will be filed with the SEC on its website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the offering may also be obtained from the offices of R.F. Lafferty & Co., Inc., 40 Wall Street, 27th floor, New York, NY 10005, by email offerings@rflafferty.com, or by calling 212-293-9090. Before investing in this offering, interested parties should read in their entirety the preliminary prospectus supplement and the accompanying prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference in such preliminary prospectus supplement and the accompanying prospectus, which provide more information about the Company and such offering.
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 KULR Technology Group, Inc.
KULR Technology Group Inc. (NYSE American: KULR) is a leading energy management platform company offering proven solutions that play a critical role in accelerating the electrification of the circular economy. Leveraging a foundation in developing, manufacturing, and licensing next-generation carbon fiber thermal management technologies for batteries and electronic systems, KULR has evolved its holistic suite of products and services to enable its customers across disciplines to operate with efficiency and sustainability in mind. For more information, please visit www.kulrtechnology.com.
Safe Harbor Statement
This press release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. This release contains certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business, which include the risk factors disclosed in our Form 10-K filed with the Securities and Exchange Commission on March 28, 2023. Forward-looking statements include statements regarding our expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” and “would” or similar words. All forecasts are provided by management in this release are based on information available at this time and management expects that internal projections and expectations may change over time. In addition, the forecasts are entirely on management’s best estimate of our future financial performance given our current contracts, current backlog of opportunities and conversations with new and existing customers about our products and services. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.
Investor Relations:
KULR Technology Group, Inc.
Phone: 858-866-8478 x 847
Email: ir@kulrtechnology.com
Media Relations:
Further PR
Email: press@furtherpr.com
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