Marwynn Announces Exercise of Overallotment Option

Rhea-AI Summary

Marwynn Holdings (NASDAQ: MWYN) announced the partial exercise of the over-allotment option from its recent IPO, resulting in the sale of an additional 50,000 shares of common stock at $4 per share, generating $200,000 in gross proceeds before deductions.

The company, which specializes in supply chain solutions for food, non-alcoholic beverages, and indoor home improvement products, began trading on the Nasdaq Capital Market on March 13, 2025. The net proceeds will fund supply chain enhancements, business expansion, sales and distribution growth, talent development, working capital, and general corporate purposes.

American Trust Investment Services (ATIS) served as the sole book-running manager for the offering, which was registered with the SEC and became effective on March 11, 2025.

Positive

• Successfully listed on Nasdaq Capital Market
• Additional $200,000 capital raised through over-allotment
• Funds allocated for business expansion and operational improvements

Negative

• Small offering size indicates capital raise
• Only partial exercise of over-allotment option suggests moderate demand

Insights

Financial Analyst

Marwynn's announcement regarding the partial exercise of their IPO overallotment option represents a standard capital markets event with minimal financial impact. The underwriters purchased an additional 50,000 shares at $4.00 per share, generating $200,000 in gross proceeds before deducting underwriting discounts and offering expenses.

This transaction provides incremental capital for Marwynn's stated growth initiatives, but the amount is modest relative to the company's $73.46 million market capitalization, representing only about 0.27% of additional dilution based on current shares outstanding. The partial exercise (rather than full exercise) of the overallotment option suggests adequate but not overwhelming demand for the IPO.

The greenshoe option, a standard feature in IPOs, allows underwriters to stabilize the stock price in early trading by having the flexibility to buy additional shares. For investors, this transaction simply represents the completion of a routine IPO process that began with the company's Nasdaq listing on March 13th.

While any additional capital is beneficial for a newly public company, the modest size of this transaction makes it unlikely to meaningfully impact Marwynn's growth trajectory or financial position. The funds will supplement the company's primary IPO proceeds for supply chain enhancements, business expansion, and working capital needs in their food, beverage, and home improvement product supply chain operations.

IRVINE, CA / ACCESS Newswire / April 4, 2025 / Marwynn Holdings, Inc. ("Marwynn" or the "Company"), a leading supply chain solutions provider for food, non-alcoholic beverages, and indoor home improvement products, today announced the sale of an additional 50,000 shares its common stock, $0.001 par value per share (the "Shares") pursuant to the partial exercise of the over-allotment option granted to the underwriters of its previously announced initial public offering, for additional gross proceeds of $200,000, before deducting underwriting discounts and offering expenses. The Company intends to use the net proceeds from the offering for supply chain enhancements, business expansion, sales and distribution growth, talent development and retention, working capital, and other general corporate purposes. The Shares began trading on The Nasdaq Capital Market on March 13, 2025 under the ticker symbol "MWYN."

American Trust Investment Services, Inc. ("ATIS") acted as the representative of the underwriters and sole book-running manager for the Offering. Lewis Brisbois Bisgaard & Smith LLP acted as legal counsel to the Company and DeMint Law, PLLC acted as legal counsel to ATIS for the Offering.

A registration statement relating to the offering has been filed with the U.S. Securities and Exchange Commission ("SEC") and became effective on March 11, 2025. A prospectus relating to and describing the terms of the offering has been filed with the SEC and is available on the SEC's website at www.sec.gov. The offering was made only by means of a prospectus. Copies of the final prospectus may be obtained from American Trust Investment Services, Inc., 230 W. Monroe, Suite 300 Chicago, IL, 60606, USA or via email at IB@amtruinvest.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any offer or 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 Marwynn Holdings, Inc.

Marwynn Holdings, Inc. is a Nevada-based holding company specializing in supply chain management for food, non-alcoholic beverages, and home improvement products. Through its subsidiaries, FuAn Enterprise, Inc. and Grand Forest Cabinetry Inc., Marwynn connects suppliers with retailers and consumers across the United States. Learn more at https://www.marwynnholdings.com/.

Forward-Looking Statements

Certain statements in this press release are forward-looking statements for purposes of the safe harbor provisions under the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may include estimates or expectations about Marwynn's operational results, financial condition, business strategies and plans, market opportunities, competitive position, industry environment, and potential growth opportunities. In some cases, forward-looking statements can be identified by terms such as "may," "will," "should," "design," "target," "aim," "hope," "expect," "could," "intend," "plan," "anticipate," "estimate," "believe," "continue," "predict," "project," "potential," "goal," or other words that convey the uncertainty of future events or outcomes. These statements relate to future events or to Marwynn's future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause Marwynn's actual results, levels of activity, performance, or achievements to be different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond Marwynn's control and which could, and likely will, affect actual results, levels of activity, performance, or achievements. Any forward-looking statement reflects Marwynn's current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to Marwynn's operations, results of operations, growth strategy, and liquidity.

Investor Relations and Media Contact:

PondelWilkinson Inc.
Judy Lin or Laurie Berman
310-279-5980
info@marwynnholdings.com

SOURCE: Marwynn Holdings, Inc.

View the original press release on ACCESS Newswire

FAQ

How much additional capital did Marwynn (MWYN) raise through its over-allotment option?

Marwynn raised $200,000 in gross proceeds through the sale of 50,000 additional shares before deducting underwriting discounts and offering expenses.

When did Marwynn (MWYN) stock begin trading on the Nasdaq Capital Market?

Marwynn (MWYN) began trading on the Nasdaq Capital Market on March 13, 2025.

What will Marwynn (MWYN) use the IPO over-allotment proceeds for?

The proceeds will be used for supply chain enhancements, business expansion, sales and distribution growth, talent development, working capital, and general corporate purposes.

Who was the lead underwriter for Marwynn's (MWYN) IPO?

American Trust Investment Services (ATIS) acted as the representative of the underwriters and sole book-running manager for the offering.