Pinnacle Food Group Limited Announces Pricing of $7.2 Million Initial Public Offering

Rhea-AI Summary

Pinnacle Food Group (PFAI), a provider of smart hydroponic growing systems and technical support services, has announced the pricing of its initial public offering (IPO) of 1,800,000 Class A common shares at $4.00 per share.

The company expects to raise gross proceeds of $7.2 million from the offering and has granted underwriters a 45-day option to purchase up to 270,000 additional shares. The Class A common shares will trade on the Nasdaq Capital Market under the symbol 'PFAI' starting April 22, 2025, with the offering expected to close on April 23, 2025.

The net proceeds will be used for expanding hydroponic growing systems functionality, business development, and working capital. Craft Capital Management serves as the representative underwriter for this offering.

Positive

• IPO will raise $7.2 million in gross proceeds
• Successful listing approval on Nasdaq Capital Market
• Additional capital potential through 270,000 share underwriter option

Negative

• Small IPO size may limit market impact and trading liquidity
• Very low par value of shares ($0.00005) indicates minimal tangible book value
• Proceeds may not be sufficient for long-term growth plans

Insights

IPO Specialist

Pinnacle Food's $7.2M micro-cap IPO enters hydroponic tech market with Nasdaq listing but scale suggests early-stage commercialization.

Pinnacle Food Group has priced its initial public offering at $4.00 per share, raising $7.2 million in gross proceeds through the issuance of 1,800,000 Class A common shares. This represents a notably small-scale IPO in today's market, suggesting the company is in relatively early stages of commercialization or operates with a market footprint.

The company, which focuses on smart hydroponic growing systems for households, community groups, and urban farms, has secured a Nasdaq Capital Market listing - providing trading liquidity and regulatory oversight, though under less stringent requirements than the Nasdaq Global Market. Trading begins April 22 under ticker symbol "PFAI."

Several elements of this offering follow standard IPO structures, including the 45-day overallotment option granting underwriters the right to purchase an additional 270,000 shares (15% of the base offering). Craft Capital Management serves as the representative underwriter.

The stated use of proceeds - expanding system functionality, business development, and working capital - provides only general direction without specific allocation details. This broad categorization is typical for early-stage companies maintaining strategic flexibility.

For context, this micro-cap offering enters the market amid growing interest in sustainable agriculture and food technology solutions, particularly those enabling localized production. However, the capital raise may constrain competitive positioning against larger, well-funded players in the agricultural technology space.

Vancouver, BC, April 21, 2025 (GLOBE NEWSWIRE) -- Pinnacle Food Group Limited (“PFAI” or “the Company”), a seller of smart hydroponic growing systems and technical support services to individual households, community groups, and urban farms, today announced the pricing of its firm commitment initial public offering of 1,800,000 Class A common shares, par value of US$0.00005 per share (“Class A Common Shares”) at a public offering price of $4.00 per share.  In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 270,000 Class A common shares at the initial public offering price, less underwriting discounts.

The Company expects to receive aggregate gross proceeds of US$7.2 million from this offering, before deducting underwriting discounts and other related expenses. The Company intends to use the net proceeds from this offering for expanding the functionality and capabilities of its hydroponic growing systems, development and expansion of its  business, and for working capital and other general corporate purposes.

The Class A common shares have been approved for listing on the Nasdaq Capital Market and are expected to begin trading under the ticker symbol “PFAI” on April 22, 2025. The offering is expected to close on April 23, 2025, subject to the satisfaction of customary closing conditions. Craft Capital Management LLC acts as the representative of the underwriters for this offering.

A registration statement on Form F-1 (File No. 333-285363) relating to these securities has been filed with the U.S. Securities and Exchange Commission and became effective on March 31, 2025. The offering is being made only by means of a prospectus forming part of the effective registration statement relating to the offering. Copies of the final prospectus related to this offering may be obtained, when available, from Craft Capital Management LLC, by standard mail to Craft Capital Management LLC, 377 Oak St, Lower Concourse, Garden City, NY 11530, by phone at +1 (516) 833-1325, or by email at skiront@craftcm.com or info@craftcm.com. In addition, a copy of the final prospectus relating to the offering, when available, may be obtained via the SEC’s website at www.sec.gov.  

Before you invest, you should read the registration statement and the preliminary prospectus contained therein and the final prospectus, when available, and other documents the Company has filed or will file with the SEC for more complete information about the Company and this offering. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, 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.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the expected trading commencement and closing dates. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the “Risk Factors” section of the registration statement for the offering filed with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov.

About Pinnacle Food Group Limited

Based in Vancouver, Canada, Pinnacle Food Group Limited sells smart hydroponic growing systems and technical support services to individual households, community groups, and urban farms. We offer both tailored hardware solutions and data-driven support, allowing our users to optimize their smart farming productivity. For more information, please visit the Company’s website at https://www.pinnaclefoodinc.com. 

Pinnacle Food Group Limited Investor Contact:                                                                            
Wencai Pan                                                                                                                                                              
Chief Financial Officer                                                                                                                                            
Office: +1 604 727 7204                                                                                                                                 
Email: ir@pinnaclefoodinc.com

Investor Relations Inquiries:
Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the Americas, 5th Floor
New York, New York 10036
Office: (646) 893-5835
Email: info@skylineccg.com 

FAQ

What is the IPO price for Pinnacle Food Group (PFAI) shares?

Pinnacle Food Group (PFAI) has priced its IPO at $4.00 per Class A common share.

How much money is PFAI raising in its initial public offering?

PFAI expects to raise gross proceeds of $7.2 million through the offering of 1,800,000 Class A common shares.

When will PFAI stock begin trading on Nasdaq?

PFAI shares are expected to begin trading on the Nasdaq Capital Market on April 22, 2025.

How will Pinnacle Food Group use the IPO proceeds?

The company will use the proceeds to expand its hydroponic growing systems functionality, business development, and working capital purposes.

What is the underwriter's option in PFAI's IPO?

Underwriters have a 45-day option to purchase up to 270,000 additional Class A common shares at the IPO price.