Vision Marine Technologies Announces Closing of Common Share Offering

Rhea-AI Summary

Vision Marine Technologies (Nasdaq: VMAR) has successfully closed its previously announced best-efforts offering of 3,400,000 common shares at $1.00 per share, raising gross proceeds of $3.4 million. The company plans to use the funds for working capital and patent application prosecution, with potential allocations for strategic acquisitions. ThinkEquity acted as the sole placement agent for this offering, which was conducted under Vision Marine's effective shelf registration statement. Vision Marine, a pioneer in electric marine propulsion, is known for its innovative E-Motion™ outboard powertrain system, which combines advanced battery technology with proprietary software to offer higher speeds and longer ranges in eco-friendly electric powerboats.

Positive

• Raised $3.4 million in gross proceeds through common share offering
• Funds to be used for working capital and patent application prosecution
• Potential for strategic acquisitions or investments in complementary businesses

Negative

• Dilution of existing shareholders due to issuance of new common shares
• Offering price of $1.00 per share may indicate low market valuation

Insights

Financial Analyst

Vision Marine's $3.4 million common share offering at $1.00 per share is a double-edged sword. While it bolsters the company's working capital, it comes at the cost of significant dilution for existing shareholders. The low offering price suggests weak investor confidence or market conditions. The intended use for working capital and patent applications indicates a focus on operational sustainability and intellectual property protection. However, the mention of potential acquisitions without specific targets raises questions about strategic direction. The involvement of ThinkEquity as the sole placement agent might indicate institutional interest. Investors should closely monitor how effectively management deploys this capital to drive growth and profitability in the competitive electric marine propulsion market.

Tech Expert

Vision Marine's focus on electric marine propulsion positions it at the forefront of a growing eco-friendly trend in the boating industry. The allocation of funds for patent applications suggests a commitment to protecting their technological innovations, important in this rapidly evolving sector. Their E-Motion™ outboard powertrain system, combining advanced battery packs, inverters and high-efficiency motors, represents a significant leap in marine technology. However, the relatively small capital raise of $3.4 million may limit the scope of R&D and innovation compared to larger competitors. The company's success will hinge on its ability to maintain a technological edge and scale production efficiently in a market that's likely to see increasing competition from both startups and established marine manufacturers pivoting to electric solutions.

MONTREAL, QC / ACCESSWIRE / September 16, 2024 / Vision Marine Technologies, Inc. (Nasdaq:VMAR) ("Vision Marine" or the "Company"), a pioneer in electric marine propulsion, today announced the closing of its previously announced best-efforts offering of 3,400,000 common shares. Each common share was sold at an offering price of $1.00 per share, for gross proceeds of $3.4 million, before deducting placement agent fees and other offering expenses. All the shares in the offering were offered by the Company.

The Company intends to use the proceeds from the offering 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 acted as sole placement agent for the offering.

The securities were offered and sold pursuant to the Company's currently effective 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 was made by means of a prospectus supplement and prospectus which have been filed with the SEC and are available on the SEC's website at www.sec.gov. You should read the applicable prospectus supplement and prospectus for more complete information about the Company and the offering. You may obtain these documents free of charge by visiting the SEC's website at www.sec.gov. Alternatively, you may obtain copies by contacting ThinkEquity, 17 State Street, 41st 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. 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

How many common shares did Vision Marine Technologies (VMAR) offer in its recent closing?

Vision Marine Technologies (VMAR) offered 3,400,000 common shares in its recent closing.

What was the offering price per share for VMAR's common share offering?

The offering price was $1.00 per common share.

How much did Vision Marine Technologies (VMAR) raise in gross proceeds from the offering?

Vision Marine Technologies (VMAR) raised gross proceeds of $3.4 million from the offering.

What does Vision Marine Technologies (VMAR) plan to use the proceeds for?

VMAR plans to use the proceeds for working capital purposes, prosecuting patent applications, and potentially for acquisitions or strategic investments in complementary businesses or technologies.

Who acted as the placement agent for Vision Marine Technologies' (VMAR) offering?

ThinkEquity acted as the sole placement agent for VMAR's offering.