The Marygold Companies, Inc. Announces Closing of Previously Announced Underwritten Public Offering

Rhea-AI Summary

The Marygold Companies (NYSE American: MGLD) has successfully closed its previously announced underwritten public offering. The company issued 2,050,000 shares of common stock at a public offering price of $1.10 per share, generating gross proceeds of approximately $2,255,000 before deducting underwriting discounts, commissions, and other offering expenses.

Maxim Group served as the sole book-running manager for the offering, which was conducted pursuant to an effective shelf registration statement on Form S-3. The offering was made available through a prospectus and prospectus supplement, with documentation accessible on the SEC's website.

Positive

• Secured approximately $2.255 million in gross proceeds from public offering
• Successfully completed underwritten public offering with established investment bank

Negative

• Potential dilution of existing shareholders due to issuance of 2.05 million new shares
• Low offering price of $1.10 per share indicates challenging market conditions

Insights

Financial Analyst

The completion of Marygold Companies' $2.255M public offering reveals several critical insights for investors. The offering price of $1.10 per share, representing a premium to current trading levels, suggests reasonable market confidence in the company's prospects. However, the modest size of the capital raise relative to the company's $45.2M market capitalization indicates a focused funding strategy rather than a transformative capital event.

The dilutive impact of the 2.05M new shares warrants attention. This offering increases the outstanding share count by approximately 4.7%, a relatively modest dilution that shouldn't significantly impact existing shareholders' value. The use of a shelf registration filed just last month demonstrates proactive capital management, allowing the company to opportunistically access markets.

Maxim Group's involvement as sole book-runner is noteworthy for a micro-cap offering, potentially providing enhanced credibility and distribution capabilities. The successful closing amid challenging market conditions for smaller companies suggests institutional interest, though the modest size may limit broader market impact.

While the immediate use of proceeds remains unspecified, this capital injection strengthens Marygold's balance sheet and provides operational flexibility for its diverse holding company structure. The timing of the offering, early in 2025, positions the company with fresh capital for potential strategic initiatives, though investors should monitor the deployment of these funds for value creation.

SAN CLEMENTE, Calif.--(BUSINESS WIRE)-- The Marygold Companies, Inc. (“TMC” or the “Company”), (NYSE American: MGLD), a diversified global holding company, today announced the closing of its previously announced underwritten public offering of 2,050,000 shares of its common stock at a public offering price of $1.10 per share. The gross proceeds from the offering to Marygold were approximately $2,255,000, before deducting underwriting discounts and commissions and other offering expenses.

Maxim Group LLC acted as sole book-running manager for the offering.

The public offering was made pursuant to an effective shelf registration statement on Form S-3 (File No. 333-283898), previously filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 18, 2024, and declared effective on December 27, 2024. The shares of common stock were offered only by means of a prospectus and prospectus supplement that form part of the effective registration statement. A final prospectus supplement describing the terms of the public offering was filed with the SEC and is available on the SEC’s website located at www.sec.gov. Electronic copies of the final prospectus supplement and accompanying prospectus relating to the public offering may also be obtained by contacting Maxim Group LLC, 300 Park Avenue, New York, NY 10022, or by telephone at (212) 895-3745.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other 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 other jurisdiction.

About The Marygold Companies, Inc.

The Marygold Companies was founded in 1996 and repositioned as a global holding firm in 2015. The Company currently has operating subsidiaries in financial services, food manufacturing, printing, security systems and beauty products, under the trade names USCF Investments, Marygold & Co., Marygold & Co. Limited, Step By Step Financial Planners, Gourmet Foods, Printstock Products, Brigadier Security Systems and Original Sprout, respectively. Offices and manufacturing operations are in the U.S., New Zealand, U.K., and Canada. For more information, visit www.themarygoldcompanies.com.

Forward Looking Statement

This press release contains forward-looking statements that are based on the Company’s beliefs and assumptions and on information currently available to the Company on the date of this press release. These forward-looking statements involve substantial risks and uncertainties. Any statements in this press release other than statements of historical fact, including statements about the Company’s future expectations, plans and prospects, constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statements about the Company’s strategy, operations and future expectations and plans and prospects for the Company, and any other statements containing the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “goal,” “may,” “might,” “plan,” “predict,” “project,” “seek,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” and similar expressions. Such forward-looking statements involve substantial risks and uncertainties that could cause the Company’s financial and operating results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements, including the factors discussed in the “Risk Factors” section contained in the quarterly and annual reports that the Company files with the Securities and Exchange Commission. Any forward-looking statement represents the Company’s views only as of the date of this press release. The Company anticipates that subsequent events and developments may cause its views to change. While the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so except as required by law even if new information becomes available in the future.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250128033130/en/

Investor Contacts:

Media and investors, for more Information, contact:

Roger S. Pondel

PondelWilkinson Inc.

310-279-5965

rpondel@pondel.com

Contact the Company:

David Neibert, Chief Operations Officer

949-429-5370

dneibert@themarygoldcompanies.com

Source: The Marygold Companies, Inc.

FAQ

How much did MGLD raise in its recent public offering?

The Marygold Companies (MGLD) raised approximately $2,255,000 in gross proceeds through its public offering before deducting underwriting discounts and commissions.

What was the share price for MGLD's public offering?

The public offering price was set at $1.10 per share.

How many new shares did MGLD issue in the public offering?

MGLD issued 2,050,000 shares of common stock in the public offering.

Who was the underwriter for MGLD's public offering?

Maxim Group acted as the sole book-running manager for the offering.

When was MGLD's shelf registration statement declared effective?

The shelf registration statement was declared effective on December 27, 2024.