Mobilicom Announces $2.95 Million Registered Direct Offering
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The definitive agreement for the sale of American Depositary Shares (ADSs) by Mobilicom Limited represents a strategic move to raise capital, potentially for expansion, research and development, or other corporate purposes. The effective purchase price of $1.55 per ADS is a critical figure, as it reflects the valuation investors are willing to assign to the company's equity. This transaction, once closed, will inject liquidity into the company but will also dilute current shareholders' equity.
From a financial perspective, the issuance of unregistered warrants is an aspect that warrants attention. Warrants are often used as a sweetener in such deals, providing investors with the right, but not the obligation, to purchase more shares at a later date, usually at a fixed price. This can be an indicator of investor confidence, as the willingness to invest in warrants suggests a belief in the company's future growth and potential upside in the stock price.
However, this transaction could also signal that the company is in immediate need of funding, which might raise questions about its current cash flow and financial health. Stakeholders should examine the terms of the offering closely, including any potential impact on the company's earnings per share (EPS) and how the raised funds are intended to be used.
In the context of the drone and robotics industry, Mobilicom's move to secure additional funding through a registered direct offering can be seen as a response to the sector's increasing demand for advanced cybersecurity solutions. The capital raised could enable the company to invest in technology advancements or strategic partnerships, which are essential for maintaining a competitive edge in this high-growth market.
The offering's timing and pricing also reflect market conditions and investor sentiment towards the company. If the price per ADS is at a discount or premium to recent trading prices, this could influence the market's perception of the company's future prospects. Additionally, the ratio of ordinary shares to ADS (275:1) is an important detail, as it affects the calculation of the company's market capitalization and the valuation metrics used by investors to compare Mobilicom to its peers.
From a legal standpoint, the distinction between the registered direct offering of ADSs and the concurrent private placement of unregistered warrants is significant. The registered direct offering involves securities that have been registered with the SEC and are therefore subject to public disclosure requirements, which provides transparency to investors. In contrast, the private placement of warrants involves securities that are not registered and are typically sold to a smaller number of accredited investors under Regulation D or other exemptions from registration.
Investors should be aware of the implications of the unregistered nature of the warrants, including restrictions on the transferability and a potential lack of liquidity. Furthermore, the terms of the warrants, such as the exercise price, expiration date and any anti-dilution provisions, are crucial for evaluating the potential future impact on the company's share structure and market dynamics.
Shoham, Israel, Jan. 26, 2024 (GLOBE NEWSWIRE) -- Mobilicom Limited (“Mobilicom” or the “Company”) (Nasdaq: MOB, MOBBW, ASX: MOB), a provider of cybersecurity and robust solutions for drones and robotics, today announced that it has entered into a definitive agreement with certain institutional investors for the purchase and sale of 1,903,225 of the Company’s American Depositary Shares (ADSs) (or ADS equivalents in lieu thereof), at an effective purchase price of
Ladenburg Thalmann & Co. Inc. acted as the exclusive placement agent for the offering.
The warrants will have an exercise price of
The gross proceeds from the offering (without taking into account any proceeds from any future exercises of warrants issued in the concurrent private placement), before deducting the placement agent's fees and other estimated offering expenses payable by the Company, are expected to be
The ADSs and the ADSs equivalents (but not the warrants or the ADSs underlying the warrants) are being offered by Mobilicom pursuant to a "shelf" registration statement on Form F-3 (File No. 333-274929) originally filed with the U.S. Securities and Exchange Commission (the "SEC") on October 10, 2023 and declared effective by the SEC on October 23, 2023. The offering of the ADSs and the ADSs equivalents is being made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and the accompanying prospectus relating to the ADSs and the ADSs equivalents being offered will be filed with the SEC. Electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained, when available, on the SEC's website at http://www.sec.gov or by contacting Ladenburg Thalmann & Co. Inc., Attention: Syndicate Department, 277 Park Avenue, 26th Floor, New York, New York 10172 or by calling 1-800-573-2541.
The warrants described above were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Act"), and Regulation D promulgated thereunder and, along with the ADSs underlying the warrants, have not been registered under the Act, or applicable state securities laws. Accordingly, the warrants and underlying ADSs may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws.
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 jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About Mobilicom
Mobilicom is a leading provider of cybersecure robust solutions for the rapidly growing defense and commercial drones and robotics market. Mobilicom’s large portfolio of field-proven technologies includes cybersecurity, software, hardware, and professional services that power, connect, guide, and secure drones and robotics. Through deployments across the globe with over 50 customers, including the world’s largest drone manufacturers, Mobilicom’s end-to-end solutions are used in mission-critical functions.
For investors, please use https://ir.mobilicom.com/
For company, please use www.mobilicom.com
Notice Regarding Forward-Looking Statements
This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. For example, the Company is using forward-looking statements when it discusses the expected closing of this offering and use of proceeds. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. 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. Forward-looking statements are based on Mobilicom Limited’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. 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 Company’s filings with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Mobilicom Limited undertakes no duty to update such information except as required under applicable law.
For more information on Mobilicom, please contact:
Liad Gelfer
Mobilicom Ltd
FAQ
What is the purchase price of the ADS in the registered direct offering?
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What is the type of offering announced by Mobilicom Limited?
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