Advent Technologies Announces $2 Million Registered Direct Offering of Common Stock
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Advent Technologies Holdings, Inc.'s recent registered direct offering, involving the sale of 10 million shares at $0.20 each, is a strategic move aimed at raising capital. This influx of $2 million in gross proceeds may be indicative of the company's need to finance operations, invest in research and development, or pay off existing debts. Typically, offerings priced below the market can dilute current shareholders' value, but they are often necessary for companies that require immediate capital.
Investors should consider the potential dilution effect of this transaction and its implications on earnings per share (EPS). However, it is also essential to evaluate the company's growth prospects and how this capital might be deployed to generate future revenues. For instance, if the funds are allocated effectively towards high-return projects or to strengthen the balance sheet, the long-term benefits could outweigh the short-term dilution.
The fuel cell and hydrogen technology sectors are rapidly evolving, with increased demand for clean energy solutions. Advent's capital raise through a direct offering suggests a proactive approach to securing funds to possibly accelerate technological advancements or expand market reach. The price of $0.20 per share should be compared against the current market price and historical performance to assess investor sentiment and market confidence in the company's future.
Understanding the competitive landscape is crucial, as this sector is characterized by high capital expenditure and long lead times for technology development. The success of such a capital raise could be a bellwether for industry trends, especially in terms of investor appetite for clean energy technology investments.
In a registered direct offering, companies sell securities directly to investors without a traditional underwriting process, which can expedite fundraising and reduce costs. It is critical to ensure that all regulatory requirements are met, including filings with the Securities and Exchange Commission (SEC). The terms of the securities purchase agreements will define the rights and obligations of both the company and the investors, including any representations, warranties and covenants.
Investors should review these agreements carefully, as they may include clauses that could affect their investment, such as lock-up periods, liquidation preferences, or anti-dilution provisions. The legal structure of the offering can also have significant tax implications for both the company and its investors.
The transaction is expected to close on or about December 27, 2023, subject to the satisfaction of customary closing conditions.
Joseph Gunnar & Co., LLC is acting as the exclusive placement agent for the offering.
The shares of common stock in the registered direct offering were offered pursuant to a "shelf" registration statement on Form S-3 (File No. 333-271389) initially filed with the Securities and Exchange Commission (the "SEC") on April 21, 2023, and declared effective by the SEC on May 2, 2023. The offering of common stock was made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and accompanying prospectus describing the terms of the proposed offering will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained, when available, by contacting Joseph Gunnar & Co., LLC Attention: Syndicate Department at 40 Wall Street, Suite 30,
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Advent Technologies Holdings, Inc
Advent Technologies Holdings, Inc. is a
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements. These forward-looking statements generally can be identified by the use of words such as "anticipate," "expect," "plan," "could," "may," "will," "believe," "estimate," "forecast," "goal," "project," and other words of similar meaning. Each forward-looking statement contained in this press release is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, the Company’s ability to maintain the listing of the Company’s common stock on Nasdaq; future financial performance; public securities’ potential liquidity and trading; impact from the outcome of any known and unknown litigation; ability to forecast and maintain an adequate rate of revenue growth and appropriately plan its expenses; expectations regarding future expenditures; future mix of revenue and effect on gross margins; attraction and retention of qualified directors, officers, employees and key personnel; ability to compete effectively in a competitive industry; ability to protect and enhance Advent’s corporate reputation and brand; expectations concerning its relationships and actions with technology partners and other third parties; impact from future regulatory, judicial and legislative changes to the industry; ability to locate and acquire complementary technologies or services and integrate those into the Company’s business; future arrangements with, or investments in, other entities or associations; and intense competition and competitive pressure from other companies worldwide in the industries in which the Company will operate; and the risks identified under the heading "Risk Factors" in Advent’s Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 31, 2023, as well as the other information filed with the SEC. Investors are cautioned not to place considerable reliance on the forward-looking statements contained in this press release. You are encouraged to read Advent’s filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document, and the Company undertakes no obligation to update or revise any of these statements. Advent’s business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.
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Advent Technologies Holdings, Inc.
Michael Trontzos
press@advent.energy
Source: Advent Technologies Inc.
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