Silynxcom Ltd. Announces Proposed Public Offering of Ordinary Shares

Rhea-AI Summary

Silynxcom (NYSE: SYNX), a manufacturer of ruggedized tactical communication headset devices, has announced a proposed public offering of ordinary shares. ThinkEquity will serve as the sole book-running manager, with a 45-day option to purchase up to an additional 15% of shares to cover over-allotments.

The offering will be conducted under a shelf registration statement on Form F-3 filed with the SEC on February 28, 2025, and declared effective on March 7, 2025. The company plans to use the net proceeds primarily for working capital and general corporate purposes.

Silynxcom specializes in developing in-ear headset devices that integrate with professional-grade ruggedized radios used by military and law enforcement units. Their products feature active sound protection and maintain ambient environmental awareness, providing users with 360° situational awareness in combat and hazardous situations.

Positive

• Additional capital to strengthen working capital position
• Shelf registration already effective, streamlining the offering process
• 45-day over-allotment option provides flexibility for increased capital raise

Negative

• Potential shareholder dilution from new ordinary shares issuance
• Uncertain offering terms and completion timeline
• No specified offering size or price disclosed

Insights

Financial Analyst

Silynxcom's announced public offering of ordinary shares represents a significant dilutive event that will directly impact existing shareholders. With a micro-cap market capitalization of just $21.47 million, any substantial issuance of new shares will meaningfully dilute current investors' ownership percentages.

The company's vague description of using proceeds for "working capital and general corporate purposes" provides minimal transparency into strategic objectives or growth initiatives that might offset dilution concerns. This generic language often signals defensive capital raising rather than funding for specific expansion opportunities.

The 45-day over-allotment option of an additional 15% shares further compounds potential dilution. For a company trading at $3.77 per share, the market typically responds negatively to such announcements, as evidenced by the frequent pattern of share price declines following secondary offering announcements in micro-cap stocks.

Without specifying the offering size or providing compelling growth initiatives for deploying new capital, this announcement creates uncertainty. The timing suggests potential liquidity concerns or operational cash needs rather than opportunistic fundraising. Investors should carefully evaluate whether the company's tactical communication headset business demonstrates sufficient growth potential to justify accepting dilution at current valuation levels.

Netanya, Israel, March 31, 2025 (GLOBE NEWSWIRE) -- Silynxcom Ltd. (NYSE American: SYNX) (“Silynxcom” or the “Company”), a manufacturer and developer of ruggedized tactical communication headset devices as well as other communication accessories, today announced that it intends to offer to sell ordinary shares in an underwritten public offering. All of the ordinary shares are to be sold by the Company. The offering is subject to market 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.

ThinkEquity is acting as sole book-running manager for the offering.

The Company expects to grant the underwriter a 45-day option to purchase up to an additional 15% of the number of ordinary shares sold in this offering to cover over-allotments, if any. The offering is subject to market 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.

The Company intends to use the net proceeds from the offering primarily for working capital and general corporate purposes.

The securities will be offered and sold pursuant to a shelf registration statement on Form F-3 (File No. 333-285443), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 28, 2025 and declared effective on March 7, 2025. The offering will be made only by means of a written prospectus. A preliminary prospectus supplement and accompanying prospectus describing the terms of the offering has been or will be filed with the SEC on its website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the offering may also be obtained from the offices of ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004. Before investing in this offering, interested parties should read in their entirety the preliminary prospectus supplement and the accompanying prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference in such preliminary prospectus supplement and the accompanying prospectus, which provide more information about the Company and such offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, 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 such state or jurisdiction.

About Silynxcom Ltd.
Silynxcom Ltd. develops, manufactures, markets, and sells ruggedized tactical communication headset devices as well as other communication accessories, all of which have been field-tested and combat-proven. The Company's in-ear headset devices, or In-Ear Headsets, are used in combat, the battlefield, riot control, demonstrations, weapons training courses, and on the factory floor. The In-Ear Headsets seamlessly integrate with third party manufacturers of professional-grade ruggedized radios that are used by soldiers in combat or by police officers in leading military and law enforcements units. The Company's In-Ear Headsets also fit tightly into the protective gear to enable users to speak and hear clearly and precisely while they are protected from the hazardous sounds of combat, riots or dangerous situations. The sleek, lightweight, In-Ear Headsets include active sound protection to eliminate unsafe sounds, while maintaining ambient environmental awareness, giving their customers 360° situational awareness. The Company works closely with its customers and seek to improve the functionality and quality of the Company's products based on actual feedback from soldiers and police officers "in the field." The Company sells its In-Ear Headsets and communication accessories directly to military forces, police and other law enforcement units. The Company also deals with specialized networks of local distributors in each locale in which it operates and has developed key strategic partnerships with radio equipment manufacturers.

For additional informaiton about the company please visit: https://silynxcom.com

Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws and are subject to substantial risks and uncertainties. Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will" "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. For example, the Company uses forward-looking statements when it discusses: the proposed public offering of its ordinary shares and intended use of proceeds from such offering. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled "Risk Factors" in the Company's Annual Report on Form 20-F for the year ended December 31, 2023 filed with the SEC on April 30, 2024, and other documents filed with or furnished to the SEC which are available on the SEC's website, www.sec.gov. The Company cautions you not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

For Investor Relations Inquiries
ARX | Capital Market Advisors
North American Equities Desk
ir@silynxcom.com  

FAQ

What is the purpose of Silynxcom's (SYNX) public offering announced in March 2025?

The offering aims to raise capital for working capital and general corporate purposes, with ThinkEquity as the sole book-running manager.

How many additional shares can ThinkEquity purchase in SYNX's March 2025 offering?

ThinkEquity has a 45-day option to purchase up to an additional 15% of the offered ordinary shares to cover over-allotments.

When was SYNX's shelf registration statement declared effective by the SEC?

The Form F-3 shelf registration statement was declared effective by the SEC on March 7, 2025.

What are the main products manufactured by Silynxcom (SYNX)?

Silynxcom manufactures ruggedized tactical communication headset devices and accessories, specializing in in-ear headsets for military and law enforcement use.