Lantronix Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Lantronix, Inc. (NASDAQ: LTRX) has initiated a proposed underwritten public offering of shares of its common stock, subject to market conditions. TL Investment GmbH plans to grant underwriters a 30-day option to purchase additional shares. Net proceeds will be utilized for working capital, possibly including repaying existing debt. The offering follows two effective shelf registration statements from the SEC. Canaccord Genuity and Craig-Hallum are the joint book-running managers. The final terms will be disclosed in a prospectus supplement.

Positive

• Proceeds will fund working capital and potentially repay existing debt.
• Offering may provide liquidity and bolster financial stability.

Negative

• The offering could lead to dilution of existing shareholders' equity.
• Market conditions may affect the offering's completion and terms.

IRVINE, Calif., Nov. 17, 2021 (GLOBE NEWSWIRE) -- Lantronix, Inc. (NASDAQ: LTRX) (“Lantronix”), a global provider of secure turnkey solutions for Intelligent IT and the Internet of Things (IoT), today announced that it has commenced a proposed underwritten public offering to issue and sell shares of its common stock. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed or as to the actual size or terms of the offering.

TL Investment GmbH also expects to grant the underwriters a 30-day option to purchase additional shares of Lantronix’s common stock in an amount of up to 15% of the number of shares sold in the offering, if any, on the same terms and conditions. Bernhard Bruscha, Lantronix’s founder and former Chairman of the Board, is managing director of TL Investment GmbH, and Dr. Heidi Nguyen, a current director of Lantronix and Mr. Bruscha’s spouse, is Vice President and a director of TL Investment GmbH.

Lantronix intends to use its net proceeds from the offering for working capital and general corporate purposes, which may include, among other things, the repayment of existing indebtedness. Lantronix will not receive any of the proceeds from the shares of common stock sold by TL Investment GmbH in the proposed offering, if any.

Canaccord Genuity and Craig-Hallum are acting as joint book-running managers for the offering.

The offering is being conducted pursuant to two effective shelf registration statements (File Nos. 333-227127 and 333-259454), which were declared effective by the Securities and Exchange Commission (“SEC”) on September 12, 2018 and October 19, 2021, respectively. The proposed offering will be made only by means of a prospectus supplement and accompanying prospectuses describing the terms of the offering. Copies of the preliminary prospectus supplement and the accompanying prospectuses relating to this offering may be obtained by contacting the following: Canaccord Genuity LLC, Attention: Syndicate Department, 99 High Street, Suite 1200, Boston, Massachusetts 02110, or by telephone at (617) 371-3900, or by email at prospectus@cgf.com, or Craig-Hallum Capital Group LLC, Attention: Equity Capital Markets, 222 South Ninth Street, Suite 350, Minneapolis, Minnesota 55402, or by telephone at (612) 334-6300, or by email at prospectus@chlm.com. These documents may also be obtained for free on the SEC’s website located at http://www.sec.gov. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.

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 the registration or qualification under the securities laws of any such state or jurisdiction.

About Lantronix

Lantronix, Inc. is a global provider of secure turnkey solutions for the Internet of Things (IoT) and Remote Environment Management (REM), offering Software as a Service (SaaS), connectivity services, engineering services and intelligent hardware.

Lantronix enables its customers to accelerate time to market and increase operational up-time and efficiency by providing reliable, secure and connected Intelligent Edge IoT and Remote Management Gateway solutions.

Lantronix’s products and services dramatically simplify the creation, development, deployment and management of IoT and IT projects across Robotics, Automotive, Wearables, Video Conferencing, Industrial, Medical, Logistics, Smart Cities, Security, Retail, Branch Office, Server Room, and Datacenter applications.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the federal securities laws, which statements are subject to substantial risks and uncertainties. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this release are forward-looking statements. We have attempted to identify forward-looking statements by using words such as “may,” “believe,” “will,” “could,” “project,” “anticipate,” “expect,” “estimate,” “should,” “continue,” “potential,” “plan,” “forecasts,” “goal,” “seek,” “intend,” other forms of these words or similar words or expressions or the negative thereof. Additionally, statements concerning future matters such as our proposed public offering and the expected use of proceeds therefrom are forward-looking statements. Completion of the proposed public offering and the terms thereof are subject to numerous factors, many of which are beyond our control, including, without limitation, market conditions, failure of customary closing conditions and the risk factors and other matters set forth in the preliminary prospectus supplement and accompanying prospectuses included in the registration statements and the documents incorporated by reference therein. You are cautioned not to place undue reliance on the forward-looking statements we make, which speak only as of the date on which they are made. We expressly disclaim any intent or obligation to update any forward-looking statements after the date hereof to conform such statements to actual results or to changes in our opinions or expectations, except as required by applicable law or the rules of The Nasdaq Capital Market. If we do update or correct any forward-looking statements, investors should not conclude that we will make additional updates or corrections.

Lantronix Investor Relations Contact:        
Jeremy Whitaker
Chief Financial Officer
investors@lantronix.com

FAQ

What is Lantronix's proposed public offering about?

Lantronix has proposed an underwritten public offering to issue and sell shares of its common stock to enhance working capital and possibly repay existing debt.

How much common stock is Lantronix planning to offer?

The exact size of the offering is not specified and is subject to market conditions.

Who are the underwriters for Lantronix's offering?

Canaccord Genuity and Craig-Hallum are acting as joint book-running managers for the offering.

What will the proceeds from Lantronix's offering be used for?

The net proceeds will be used for working capital and general corporate purposes, including potentially repaying existing indebtedness.

What is the impact of the offering on LTRX shareholders?

The offering could lead to dilution of existing shareholders' equity, depending on the number of shares sold.