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SolarMax Technology, Inc. Announces Exercise of Overallotment Option From Initial Public Offering

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SolarMax Technology, Inc. announces the partial exercise of the underwriters' option to purchase additional shares of common stock, resulting in aggregate gross proceeds of approximately $20 million from its recent IPO at $4.00 per share.
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The partial exercise of the over-allotment option by the underwriters in SolarMax Technology's IPO is a positive signal for the company's market reception. The additional capital of approximately $20 million, before fees and expenses, strengthens the company's balance sheet, providing more resources for growth and operational activities. It is essential to assess how this influx of capital will be allocated, as strategic investments in technology, market expansion, or debt reduction can significantly influence SolarMax's financial health and stock performance.

Investors should consider the company's valuation in light of the IPO price and subsequent trading performance. The $4.00 per share price point will serve as a benchmark against which future performance will be measured. It's also important to monitor the lock-up period terms and any potential market dilution from the additional shares. The role of Kingswood as the sole bookrunner reflects their confidence in the offering, which can be interpreted as a positive endorsement.

The solar energy sector is experiencing growth, driven by increasing demand for renewable energy solutions and favorable government policies. SolarMax's successful IPO and the exercise of the over-allotment option suggest investor confidence in the sector and the company's business model. However, it's critical to analyze the competitive landscape in which SolarMax operates. The company's ability to differentiate itself and capture market share will be a determinant of its long-term success.

Market trends, such as the cost of solar panels, advancements in solar technology and the global push towards sustainability, will impact SolarMax's market opportunities. Investors should track the company's performance against industry growth rates and its operational efficiency metrics to gauge its potential for market leadership and profitability.

The mention of a registration statement on Form S-1 being declared effective by the SEC indicates that SolarMax has complied with necessary regulatory requirements for its IPO. The effectiveness of this registration is a critical step in the process, as it signifies that the company has met disclosure standards set by the SEC for public offerings. Potential investors should understand that the offering is subject to securities laws and any investment carries inherent risks.

It is also noteworthy that the press release explicitly states that the offering was only made by means of a prospectus, ensuring transparency and regulatory compliance. The disclaimer regarding the jurisdictional limitations of the offering is a standard legal precaution, underscoring the importance of adhering to the various securities regulations across different jurisdictions.

RIVERSIDE, CA, March 05, 2024 (GLOBE NEWSWIRE) -- via NewMediaWire – SolarMax Technology, Inc. (“SolarMax” or the “Company”)  (Nasdaq SMXT), an integrated solar energy company, announced today that the underwriters of its recently completed initial public offering (“IPO”) of common stock have purchased 539,950 shares of common stock upon partial exercise of their option to purchase additional shares of common stock to cover over-allotments at the initial public offering price of $4.00 per share.

Including proceeds from the sale of the additional shares, the aggregate gross proceeds from the IPO were approximately $20 million, prior to deducting the underwriting discounts, commissions and offering expenses payable by the Company.

Kingswood, a division of Kingswood Capital Partners, LLC (“Kingswood”), acted as sole bookrunner for the offering.

A registration statement on Form S-1 (File No. 333-266206) relating to the offering has been filed with the U.S. Securities and Exchange Commission (the "SEC"), which was declared effective on February 12, 2024. The offering was made only by means of a prospectus.  A copy of the final prospectus relating to the offering may be obtained on the SEC’s website at www.sec.gov  and from Kingswood, by email at lciervo@kingswoodus.com or by calling 561-961-0505 or standard mail at Kingswood Capital Partners, LLC, 7280 W Palmetto Park Rd., Suite 301, Boca Raton, FL 33433.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

About SolarMax Technology Inc.

SolarMax is an integrated solar and renewable energy company. A solar energy system retains the direct current (DC) electricity from the sun and converts it to alternating current (AC) electricity that can be used to power residential homes and commercial businesses. The solar business is based on the ability of the users of solar energy systems to save on energy costs and reduce their carbon imprint as compared with power purchased from the local electricity utility company. SolarMax was founded in 2008 to engage in the solar business in the United States and commenced operations in China in 2016. SolarMax’s United States operations primarily consist of the sale and installation of photovoltaic and battery backup systems for residential and commercial customers and sales of LED systems and services to government and commercial users.  SolarMax’s China operations consist primarily of identifying and procuring solar farm projects for resale to third parties and performing EPC services primarily for solar farm projects.   All of SolarMax’s revenues for 2022 and 2023 has been generated by its United States operations.

SolarMax’s website is www.solarmaxtech.com. Any information contained on, or that can be accessed through, our website or any other website or any social media is not a part of this press release.

About Kingswood

Kingswood U.S., part of the Kingswood Group, is a network of wealth management firms that includes SEC-registered investment advisors and a FINRA-licensed broker-dealer, Kingswood offers investment banking and advisory services along with comprehensive wealth management and business-building services, designed specifically for the independent financial advisor. Together with its parent company, the Kingswood Group has more than $13 billion in assets under management, and 400 registered individuals. Kingswood combines the resources and capital of a large financial services firm with the personalized touch and feel of a boutique company. Kingswood has earned a reputation as a firm built for advisors by advisors.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”) as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “would,” “could,” “seek,” “intend,” “plan,” “goal,” “project,” “estimate,” “anticipate,” “strategy,” “future,” “likely” or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company's strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements are subject to risk and uncertainties, including, but not limited to, those described in “Risk Factors,” “Management's Discussion and Analysis of Financial Condition and Results of Operations,” “Cautionary Note on Forward-Looking Statements” in the Registration Statement on Form S-1 filed with the SEC (Reg. No. 333-266206) and the final prospectus dated February 27, 2024. SolarMax undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

Contact:
For more information, contact:
Stephen Brown, CFO
(951) 300-0711


FAQ

How many additional shares of common stock were purchased by the underwriters?

The underwriters purchased 539,950 shares of common stock upon partial exercise of their option.

What was the price per share in the IPO?

The initial public offering price was $4.00 per share.

Who acted as the sole bookrunner for the offering?

Kingswood, a division of Kingswood Capital Partners, LLC, acted as the sole bookrunner for the offering.

What was the aggregate gross proceeds from the IPO?

The aggregate gross proceeds from the IPO were approximately $20 million.

When was the registration statement declared effective by the SEC?

The registration statement on Form S-1 (File No. 333-266206) was declared effective on February 12, 2024.

Solarmax Technology Inc.

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