Vision Marine Technologies Announces $5.8 Million Private Placement

Rhea-AI Summary

Vision Marine Technologies (NASDAQ: VMAR) has announced a $5.8 million private placement through definitive securities purchase agreements with accredited and institutional investors on January 12, 2025. The company will issue 4,626,400 common shares (or pre-funded warrants) and warrants to purchase 2,313,200 common shares at $1.25 per unit.

The common warrants will be exercisable at $1.50 per share for five and a half years, while pre-funded warrants will have an exercise price of $0.001 per share. The private placement is expected to close on January 14, 2025. ThinkEquity is serving as the exclusive placement agent, and the proceeds will be used for working capital and general corporate purposes.

Positive

• Secured $5.8 million in new funding
• 5.5-year warrant term provides long-term funding flexibility

Negative

• Potential dilution for existing shareholders through issuance of 4.6M new shares
• Offering price of $1.25 per unit may represent a discount to market price
• Additional potential dilution from 2.3M warrant shares

Insights

Financial Analyst

Vision Marine's $5.8 million private placement represents a significant capital injection, though at a discounted price of $1.25 per unit, approximately 16% below the current market price. The structure, combining common shares with warrants, provides future upside potential through the $1.50 warrant exercise price, but also indicates potential dilution of up to 6,939,600 shares (including warrant exercises) - a substantial 40% increase to the current float.

The offering's timing and pricing suggest urgent capital needs, likely for operational funding rather than expansion, given the stated use for "working capital and general corporate purposes." The involvement of ThinkEquity as placement agent and the focus on accredited investors demonstrates institutional backing, though the warrant-heavy structure and five-and-a-half-year exercise period points to a longer-term financing strategy rather than immediate confidence in price appreciation.

The pre-funded warrants at $0.001 exercise price effectively function as deferred common shares, likely structured to accommodate investors hitting ownership limitations. This complex structure, while providing flexibility, suggests challenging negotiations to secure this financing.

Market Research Analyst

The electric marine propulsion market context is important here - Vision Marine's capital raise comes amid growing demand for sustainable marine technologies, but also intensifying competition. The dilutive financing structure reflects both the nascent stage of the E-Motion™ powertrain commercialization and the capital-intensive nature of the electric marine sector.

Market positioning remains challenging - while Vision Marine holds innovative technology, the sector's high development costs and extended commercialization timelines necessitate substantial ongoing capital requirements. This financing, while providing essential working capital, highlights the company's dependence on external funding at terms that may not optimally serve existing shareholders.

The deal's structure, particularly the extended warrant coverage, indicates investor skepticism about near-term profitability, though the $1.50 strike price suggests some confidence in medium-term upside potential. For a company with a $6.1 million market cap, this financing's size and terms materially impact the investment thesis, shifting focus from growth potential to funding sustainability.

MONTREAL, QC / ACCESSWIRE / January 13, 2025 / Vision Marine Technologies Inc. (the "Company", "Vision Marine", "we", "us", "our") (Nasdaq:VMAR), a pioneer in electric marine propulsion, today announced that it has entered into definitive securities purchase agreements dated January 12, 2025 with accredited and institutional investors for the issuance and sale of units consisting of common shares (each a "Common Shares") (or pre-funded warrants ("Pre-funded Warrants") to purchase in lieu thereof) together with warrants (each a "Common Warrant") to purchase one-half of the number of shares of common shares (or Pre-funded Warrants) of the Company at a price of US $1.25 per unit, on a brokered private placement basis, for aggregate gross proceeds of approximately US $5.8 million, before deducting fees and offering expenses.

Vision Marine Technologies
logo

The Company will be issuing a combination of 4,626,400 common shares (or Pre-funded Warrants in lieu thereof), and common warrants to purchase 2,313,200 common shares. Each Pre-funded Warrant will entitle the holder to acquire one common share at an exercise price of $0.001 per share, and each Common Warrant will be immediately exercisable and entitle the holder to acquire one common share at an exercise price of $1.50 per share, for a period of five and one-half years following the closing of the Offering. The private placement is expected to close on January 14, 2025, subject to customary closing conditions.

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

ThinkEquity is acting as the exclusive placement agent for the Offering.

The securities offered and sold by the Company in the private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (the "SEC") or an applicable exemption from such registration requirements. The Company has agreed to file a registration statement with the SEC covering the resale of the Common Shares, the Common Shares underlying the Pre-funded Warrants and the Common Warrants to be issued in the private placement. Any resale of the Company's shares under such resale registration statement will be made only by means of a prospectus.

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 any such state or jurisdiction. The securities will not be registered under the Securities Act or any state securities laws when issued at the closing of the private placement, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state laws.

About Vision Marine Technologies Inc.
Vision Marine Technologies, Inc. (NASDAQ: VMAR) is transforming the marine industry with its revolutionary E-Motion™ outboard powertrain system. Combining advanced battery technology, high-efficiency motors, proprietary software, and innovative assembly techniques, Vision Marine is driving the shift to sustainable, electric-powered recreational boating.

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

Contact Information

Bruce Nurse
Investor Relations
bn@v-mti.com
303-919-2913

SOURCE: Vision Marine Technologies

View the original press release on accesswire.com

FAQ

How much did Vision Marine Technologies (VMAR) raise in their January 2025 private placement?

Vision Marine Technologies raised approximately $5.8 million in gross proceeds through their January 2025 private placement.

What is the exercise price for VMAR's common warrants issued in January 2025?

The common warrants have an exercise price of $1.50 per share and are exercisable for five and a half years.

How many new shares will VMAR issue in the January 2025 private placement?

VMAR will issue 4,626,400 common shares (or pre-funded warrants) along with warrants to purchase an additional 2,313,200 common shares.

What is the unit price for VMAR's January 2025 private placement?

The units in VMAR's private placement are priced at $1.25 per unit.

How will VMAR use the proceeds from the January 2025 private placement?

Vision Marine Technologies intends to use the proceeds for working capital and general corporate purposes.