LQR House Announces Full Exercise and Closing of Underwriters' Over-Allotment Option
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Insights
The full exercise of the over-allotment option by the underwriters of LQR House Inc.'s public offering represents a significant liquidity event for the company. The sale of an additional 392,857 shares at $4.20 per share, resulting in gross proceeds of $1,650,000, strengthens the company's cash reserves. This capital infusion is critical for LQR House as it seeks to extend its operational runway and move towards profitability.
From a financial perspective, the company's strategy to minimize shareholder dilution by postponing future offerings is prudent. The management's focus on cash preservation is likely to be well-received by the market, as it suggests a commitment to enhancing shareholder value. The elimination of outstanding warrants also simplifies the capital structure, potentially making the stock more attractive to investors.
However, investors should consider the potential for future capital needs beyond the 12-month runway. While the current cash position appears robust, the company's long-term growth strategy and capital expenditure plans will dictate the adequacy of these funds.
The spirits and beverage industry is highly competitive, with a significant online presence. LQR House's niche e-commerce platform positions it uniquely within this market. The successful capital raise indicates investor confidence in the company's business model and growth prospects.
Market dynamics, such as consumer trends towards online shopping and premiumization of spirits, may benefit LQR House. However, it must navigate challenges such as regulatory changes, competition from larger players and shifts in consumer preferences. The company's ability to leverage its cash position to capitalize on these market trends will be crucial for its success.
It is also important to monitor how LQR House plans to deploy the raised capital. Strategic investments in marketing, technology and inventory could enhance its competitive edge and market share, thereby impacting its stock performance positively.
The offering was conducted under LQR House's Form S-1 registration statement with the SEC, which ensures regulatory compliance and transparency. The effectiveness of the registration by the SEC and the availability of a final prospectus to investors are key legal steps that provide a layer of security for potential investors.
It is also noteworthy that the press release includes a disclaimer, which is a standard legal precaution, stating that the press release does not constitute an offer to sell or a solicitation of an offer to buy the securities. This language is crucial to comply with securities law and to avoid potential legal issues related to the offering.
Investors should be aware of the legal framework governing such offerings, as it can affect the timing and structure of the investment and ultimately, the performance of the company's stock in the market.
MIAMI, FL / ACCESSWIRE / December 28, 2023 / MIAMI BEACH, FL / ACCESSWIRE / December 28, 2023 / LQR House Inc. (the "Company" or "LQR House") (NASDAQ:LQR), a niche ecommerce platform specializing in the spirits and beverage industry, today announced that, in connection with its previously announced public offering, the underwriters have exercised in full their over-allotment option to purchase an additional 392,857 shares (the "Option Shares") of LQR House's common stock at
We believe that the net proceeds from the full exercise of the over-allotment is set to strengthen LQR House's standing, leaving us in a favorable cash position that we believe will sustain a runway of over 12 months and allow us to become profitable.
Sean Dollinger, the CEO of LQR House, highlights the positive impact from the complete exercise of the over-allotment option and the elimination of all outstanding warrants. He underscores, "At present, our central objective is to minimize dilution and protect the interests of our shareholders. Our dedication to prioritizing shareholder input remains steadfast, leading us to postpone any upcoming offerings. With substantial cash reserves, we believe that LQR House is well-equipped to maintain operations for a minimum of 12 months".
EF Hutton, division of Benchmark Investments, LLC acted as sole book-running manager for the offering.
The offering was conducted pursuant to the Company's registration statement on Form S-1, as amended (File No. 333-275363), previously filed with the Securities and Exchange Commission ("SEC") that was declared effective by the SEC on November 9, 2023. A final prospectus relating to the offering was filed with the SEC on November 13, 2023 and is available on the SEC's website at www.sec.gov. Electronic copies of the final prospectus relating to this offering may be obtained from EF Hutton, division of Benchmark Investments, LLC, 590 Madison Avenue, 39th Floor, New York, NY 10022, Attention: Syndicate Department, or via email at syndicate@efhuttongroup.com or via telephone at (212) 404-7002.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, 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 LQR House Inc.
LQR House intends to become a prominent force in the wine and spirits e-commerce sector, epitomized by its flagship alcohol marketplace, cwspirits.com. This platform seamlessly delivers a diverse range of emerging, premium, and luxury spirits, wines, and champagnes from esteemed retail partners like Country Wine & Spirits. Functioning as a technology-driven hub, LQR House utilizes software, data analytics, and artificial intelligence to elevate the consumer experience. CWSpirits.com stands out as the go-to destination for modern, convenience-oriented shoppers, providing a curated selection of alcohol products delivered to homes across the United States. Beyond its role as an e-commerce leader, LQR House is a marketing agency with a specialized focus on the alcohol industry. The Company measures campaign success by directly correlating it with sales on CWSpirits.com, demonstrating a proven return on investment. Backed by an influential network of over 550 figures in the alcohol space, LQR House strategically drives traffic to CWSpirits.com, enhancing brand visibility. LQR House intends to disrupt the traditional landscape of the alcohol industry, driven by its dedication to providing an unparalleled online purchasing experience and delivering tailored marketing solutions.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Shareholders can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the "Risk Factors" section of the registration statement on Form S-1 filed with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement on Form S-1 and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.
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SOURCE: LQR House Inc.
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