Vision Marine Technologies Announces $3.4 Million Offering

Rhea-AI Summary

Vision Marine Technologies (Nasdaq: VMAR), a leader in electric marine propulsion, has announced a $3.4 million offering of 3,400,000 common shares priced at $1.00 per share. The offering, expected to close on September 16, 2024, aims to raise funds primarily for working capital and patent applications. ThinkEquity is acting as the sole placement agent for this best-efforts offering. The company may also consider using part of the proceeds for strategic acquisitions or investments in complementary businesses or technologies, although no specific targets have been identified. This offering is being conducted under Vision Marine's shelf registration statement on Form F-3, which was declared effective on December 21, 2022.

Positive

• Raised $3.4 million through a common share offering
• Funds to be used for working capital and patent applications
• Potential for strategic acquisitions or investments in complementary technologies

Negative

• Dilution of existing shareholders due to new share issuance
• Low offering price of $1.00 per share may indicate weak market demand
• Best-efforts offering structure suggests uncertainty in fully placing the shares

Insights

Financial Analyst

Vision Marine's $3.4 million offering at $1.00 per share represents a significant dilution for existing shareholders, given the company's current market cap. This capital raise, while providing necessary working capital, comes at a high cost. The pricing below recent trading levels suggests weak investor demand and potential market skepticism about the company's near-term prospects.

The intended use of proceeds for working capital and patent applications indicates ongoing cash burn and a need to protect intellectual property. However, the lack of specific growth initiatives or R&D investments in the use of proceeds is concerning. The mention of potential acquisitions without identified targets adds uncertainty to the company's strategic direction.

Investors should closely monitor Vision Marine's cash runway and progress in commercializing its E-Motion™ technology to assess the long-term impact of this dilutive offering.

Tech Expert

Vision Marine's E-Motion™ outboard powertrain system represents a significant technological advancement in marine propulsion. The integration of advanced battery packs, inverters and high-efficiency motors with proprietary software demonstrates a comprehensive approach to electric boating.

However, the need for additional capital through this offering raises questions about the commercialization timeline and market adoption rate of their technology. The focus on patent applications suggests a defensive strategy to protect their innovations, which is important in the competitive electric vehicle market.

The success of Vision Marine will largely depend on their ability to scale production, reduce costs and establish a strong market presence before larger competitors enter the space. Investors should watch for partnerships with boat manufacturers and key performance metrics in future reports.

MONTREAL, QC / ACCESSWIRE / September 13, 2024 / Vision Marine Technologies, Inc. (Nasdaq:VMAR) ("Vision Marine" or the "Company"), a pioneer in electric marine propulsion, today announced the pricing of a best-efforts offering of 3,400,000 common shares. Each common share is being sold at an offering price of $1.00 per share. All of the common shares in the offering are being offered by the Company. Total gross proceeds from the offering, before deducting the placement agent's fees and other offering expenses, are expected to be $3.4 million. The offering is expected to close on September 16, 2024, subject to satisfaction of customary closing conditions.

The Company intends to use the net proceeds from the offering primarily for working capital purposes and prosecuting patent applications. The Company may also use a portion of the net proceeds from this offering for acquisitions or strategic investments in complementary businesses or technologies, however, no acquisition targets have been identified.

ThinkEquity is acting as sole placement agent for the offering.

The securities described above are being offered and sold by the Company pursuant to a shelf registration statement on Form F-3 (File No. 333-267893), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the "SEC") on October 14, 2022 and declared effective on December 21, 2022. The offering is being made only by means of a written prospectus. A final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and can be accessed for free on the SEC's website at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may be obtained, when available, from the offices of ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004.

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

About Vision Marine Technologies Inc.

Vision Marine Technologies Inc. (Nasdaq:VMAR) epitomizes the marine industry's shift towards electric propulsion, offering the pioneering E-Motion™ outboard powertrain system. This innovative technology represents a significant leap forward in marine propulsion, combining advanced battery packs, inverters, and high-efficiency motors with proprietary software and assembly techniques. Vision Marine's commitment to eco-friendly electric powerboats is reshaping the recreational boating experience, offering higher speeds, longer ranges, and smoother rides than traditional internal combustion engine boats. With a focus on design, innovation, and craftsmanship, Vision Marine continues to redefine recreational boating for a more sustainable future.

Forward-Looking Statements

This press release contains forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include predictions, expectations, estimates, and other information that might be considered future events or trends, not relating to historical matters. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to differ materially from those expressed or implied by such statements. Vision Marine's Annual Report on Form 20-F for the year ended August 31, 2023, and its periodic filings with the SEC provide a detailed discussion of these risks and uncertainties. There can be no assurance that Vision Marine will be able to complete the offering on the anticipated terms, or at all. Vision Marine does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, as required by law.

Website: visionmarinetechnologies.com
Twitter: @marine_vision
Facebook: @VisionMarineTechnologies
Instagram: @visionmarine.technologies
YouTube: @VisionMarineTechnologies

Investor and Company Contact:

Bruce Nurse
(303) 919-2913
bn@v-mti.com

SOURCE: Vision Marine Technologies Inc

View the original press release on accesswire.com

FAQ

What is the purpose of Vision Marine Technologies' $3.4 million offering?

Vision Marine Technologies (VMAR) is raising $3.4 million primarily for working capital purposes and to prosecute patent applications. The company may also use a portion of the proceeds for potential acquisitions or strategic investments in complementary businesses or technologies.

How many shares is Vision Marine Technologies (VMAR) offering and at what price?

Vision Marine Technologies (VMAR) is offering 3,400,000 common shares at a price of $1.00 per share in a best-efforts offering.

When is the expected closing date for Vision Marine Technologies' (VMAR) offering?

The offering by Vision Marine Technologies (VMAR) is expected to close on September 16, 2024, subject to satisfaction of customary closing conditions.

Who is the placement agent for Vision Marine Technologies' (VMAR) $3.4 million offering?

ThinkEquity is acting as the sole placement agent for Vision Marine Technologies' (VMAR) $3.4 million offering.