WallachBeth Capital Announces Closing of SU Group's $6 Million Public Offering

SU Group (Nasdaq:SUGP) closed a $6 million public offering of 3,000,000 Units at $2.00 per Unit.

Rhea-AI Summary

SU Group (Nasdaq:SUGP) closed a $6 million public offering of 3,000,000 Units at $2.00 per Unit. Each Unit includes one pre-funded warrant for one Class A ordinary share and two 25-month warrants, each exercisable for one Class A ordinary share at $5.50.

According to SU Group, part of the proceeds will be held in escrow until a resale registration statement is declared effective by the SEC. Net proceeds are intended for strategic acquisitions in the security services industry and general working capital.

Positive

• $6 million gross proceeds raised through public offering
• 3,000,000 Units sold at $2.00 per Unit
• Proceeds targeted to strategic acquisitions in security services
• Additional capital potential via Warrants exercisable at $5.50
• Net proceeds also allocated to general working capital

Negative

• Equity-linked Units and Warrants imply future share dilution
• Portion of offering proceeds held in escrow pending SEC effectiveness

Argus May 13 session

+17.50% close to close Open Argus

Details

News Market Reaction – SUGP

In the May 13 session, SUGP gained 17.50%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock surged +17.5% in the session following this news. A strong positive reaction would have co...

Analysis

The stock surged +17.5% in the session following this news. A strong positive reaction would have contrasted with SUGP’s history, where offering headlines around this same $6 million unit deal coincided with a -27.11% move. Any sustained strength would need to be weighed against dilution from 3,000,000 Units and associated warrants at $5.50, as well as prior financial trends that included a shift to net loss and margin compression.

Key Figures

Gross proceeds: $6 million Units offered: 3,000,000 Units Unit price: US$2.00 per Unit +5 more

Gross proceeds

$6 million

Aggregate gross proceeds from public offering before fees and expenses

Units offered

3,000,000 Units

Number of Units in the public offering

Unit price

US$2.00 per Unit

Public offering price per Unit

Pre-Funded Warrant ratio

1 per Unit

Each Unit includes one pre-funded warrant for one Class A share

Warrants per Unit

2 warrants

Each Unit includes two warrants for one Class A share each

Warrant term

25 months

Term of each warrant included in the Units

Warrant exercise price

US$5.50 per share

Exercise price for each warrant to purchase Class A shares

Escrow release window

2 trading days

Latest release time after resale registration becomes effective

Previous Offering Reports

2 past events · Latest: May 12

Same Type 2 events

1. May 12

   Equity offering pricing

   24h Move

   -27.1%

   Priced $6M registered unit offering with warrants at $2.00 per Unit.

2. May 12

   Equity offering pricing

   24h Move

   -27.1%

   Announced pricing of $6M public offering under effective Form F‑1.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

pre-funded warrant, warrants, registration rights agreement, resale registration statement, +3 more

7 terms

pre-funded warrant financial

"each Unit consisting of (i) one pre-funded warrant (a "Pre-Funded Warrant") to purchase"

A pre-funded warrant is a financial instrument that gives the holder the right to buy shares of a company's stock at a set price, with most of the purchase cost already paid upfront. It functions like a nearly fully paid option, allowing investors to secure shares quickly while minimizing the amount of additional money they need to invest later. This helps investors gain ownership rights efficiently, often used to avoid certain regulatory restrictions or to prepare for future stock purchases.

warrants financial

"and (ii) two warrants with a twenty-five-month term, each warrant to purchase"

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

View in glossary

registration rights agreement financial

"the Company entered into a registration rights agreement with the investors in this offering"

A registration rights agreement is a contract that gives investors the option to have their ownership stakes officially registered with the government, making it easier to sell their shares later. This agreement matters because it provides investors with a clearer path to cash out their investments if they choose, offering more liquidity and confidence in their ability to sell their holdings when desired.

resale registration statement regulatory

"file a resale registration statement, subsequent to this offering, covering the Class A ordinary"

A resale registration statement is a document filed with regulators that allows existing shareholders to sell their shares to the public. It provides the necessary legal approval and information for these shares to be resold on the market, helping to increase the availability of shares for trading. For investors, it signals that shares held by current owners can be offered for sale, potentially affecting share prices and market liquidity.

escrow agreement financial

"the Company entered into an escrow agreement with WallachBeth Capital, LLC and Continental"

An escrow agreement is a contract that names a neutral third party to hold money, documents, or assets in a secure “safe” until specific conditions are met by the parties involved. For investors, it reduces risk by ensuring that payments, stock transfers, or regulatory approvals only occur when agreed milestones are satisfied, protecting buyers and sellers and making deals more reliable and predictable.

escrow agent financial

"Transfer & Trust Company, as escrow agent. Pursuant to the escrow agreement a portion"

An escrow agent is a neutral third party who holds money, stock certificates, documents, or other assets safely until the agreed conditions of a transaction are met, then releases them to the proper parties. Think of them as a trusted referee or locked safe that protects both sides during deals; for investors, they reduce the risk of fraud or missed obligations and provide assurance that payments, transfers or regulatory requirements will occur only when contract terms are fulfilled.

prospectus regulatory

"you should read the prospectus and other documents the Company has filed"

A prospectus is a detailed document that explains a company's plans for offering new shares or investments to the public. It’s important because it provides potential investors with key information about the company’s business, risks, and how they might make money, helping them decide whether to invest. Think of it as a guidebook for understanding what you're buying into.

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JERSEY CITY, N.J., May 13, 2026 /PRNewswire/ -- WallachBeth Capital LLC, a leading provider of capital markets and institutional execution services, announces the closing of SU Group Holdings Limited (Nasdaq: SUGP) public offering of securities as described below for aggregate gross proceeds to the Company of $6 million, before deducting agent fees and other estimated expenses payable by the company.

The offering consists of 3,000,000 Units ("Units"), each Unit consisting of (i) one pre-funded warrant (a "Pre-Funded Warrant") to purchase one Class A ordinary share ("Class A ordinary share"), and (ii) two warrants with a twenty-five-month term, each warrant to purchase one Class A ordinary share (the "Warrants").

We offered each Unit at a public offering price of US$2.00 per Unit. Each of the Warrants will be immediately exercisable for one Class A ordinary share at an exercise price of US$5.50 per share.

The Company filed a final prospectus relating to the offering with the U.S. Securities and Exchange Commission on May 12, 2026, which describes, among other things, the number and terms of the securities sold in the offering.

In connection with this offering, the Company entered into a registration rights agreement with the investors in this offering, pursuant to which the Company will be obligated to file a resale registration statement, subsequent to this offering, covering the Class A ordinary shares underlying the Warrants and the Pre-Funded Warrants that are not covered by the registration statement.

In connection with this offering, the Company entered into an escrow agreement with WallachBeth Capital, LLC and Continental Stock Transfer & Trust Company, as escrow agent. Pursuant to the escrow agreement a portion of the proceeds of this offering will be held in escrow and not released to the Company until no later than two trading days after the resale registration statement is declared effective by the U.S. Securities and Exchange Commission.

The Company intends to use the net proceeds of the offering (i) to pursue strategic acquisitions and investment opportunities to strengthen our market position and further enhance our competitiveness in the security services industry and (ii) for general working capital purposes.

WallachBeth Capital, LLC acted as sole placement agent for the offering. Nauth LPC acted as US securities counsel to the Company and Hunter Taubman Fischer & Li LLC acted as US securities counsel to Wallachbeth Capital, LLC.

Before you invest, you should read the prospectus and other documents the Company has filed or will file with the U.S. Securities and Exchange Commission for more complete information about the Company and the Offering. This press release shall not constitute an offer to sell, or the solicitation of an offer to buy any of the Company's securities, nor shall such securities be offered or sold in the United States absent registration or an applicable exemption from registration, nor shall there be any offer, solicitation or sale of any of the Company's securities in any state or jurisdiction in which such offers, solicitations or sales would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. Any offers, solicitations, or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

About WallachBeth Capital LLC:

WallachBeth Capital offers a robust range of capital markets and investment banking services to the security community, connecting corporate clients with leading institutions, supporting issuers and investors in achieving their financial goals. The firm's experience includes initial public offerings, follow-on issues, PIPE offerings, and private transactions and ATM's.

Forward-Looking Statements

The Company makes forward-looking statements in this report within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties, including the closing of the offering, and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs.  These statements may be preceded by, followed by or include the words "may," "might," "will," "will likely result," "should," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "continue," "target" or similar expressions. These forward-looking statements are based on information available to the Company as of the date of this report and involve substantial risks and uncertainties. Actual results may vary materially from those expressed or implied by the forward-looking statements herein due to a variety of factors, and other risks and uncertainties set forth in our reports filed with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update forward-looking statements as a result of new information, future events or developments or otherwise.

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SOURCE WallachBeth Capital LLC

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What are the key details of SU Group (SUGP) $6 million public offering closed on May 13, 2026?

SU Group completed a $6 million public offering of 3,000,000 Units at $2.00 each. According to SU Group, each Unit contains one pre-funded warrant and two 25-month warrants, each exercisable for one Class A ordinary share at $5.50.

How will SU Group (SUGP) use the net proceeds from its May 2026 public offering?

SU Group plans to use net proceeds for strategic acquisitions and general working capital. According to SU Group, acquisitions will aim to strengthen its market position and competitiveness in the security services industry, with remaining funds supporting ongoing operational needs.

What securities are included in the Units from SU Group (SUGP) May 2026 offering?

Each Unit includes one pre-funded warrant and two standard warrants for Class A ordinary shares. According to SU Group, the warrants have a twenty-five-month term and each standard warrant is immediately exercisable at an exercise price of $5.50 per Class A ordinary share.

How does the escrow arrangement affect SU Group (SUGP) May 2026 offering proceeds?

A portion of SU Group’s offering proceeds will be held in escrow under an agreement with WallachBeth Capital and Continental Stock Transfer & Trust. According to SU Group, these funds release no later than two trading days after SEC effectiveness of the resale registration statement.

What is the purpose of the resale registration statement for SU Group (SUGP) May 2026 warrants?

SU Group agreed to file a resale registration statement covering shares underlying the warrants and pre-funded warrants. According to SU Group, this registration relates to Class A ordinary shares not already covered, enabling investors to resell those shares once the statement is effective.

Who acted as placement agent for SU Group (SUGP) $6 million public offering in May 2026?

WallachBeth Capital served as sole placement agent for SU Group’s public offering. According to SU Group, Nauth LPC acted as US securities counsel to the company, while Hunter Taubman Fischer & Li served as US securities counsel to WallachBeth Capital.

What are the warrant terms from SU Group (SUGP) May 2026 offering and potential future share issuance?

The offering’s standard warrants are immediately exercisable and have a twenty-five-month term. According to SU Group, each warrant allows purchase of one Class A ordinary share at $5.50, which could lead to future share issuance if holders choose to exercise.