LONDON - Gorilla Technology Group Inc. (NASDAQ: GRRR), a specialist in various intelligence and IoT technologies, has entered into agreements with institutional investors for a registered direct offering expected to raise approximately $12 million. The transaction includes the sale of over 2 million ordinary shares and equal warrants, with an exercise price set at $5.90 per share.
The company, which operates within the realms of Security Intelligence, Network (LON:NETW) Intelligence, Business Intelligence, and IoT, announced today that the offering's closing is anticipated around June 10, 2024, subject to customary closing conditions. Each ordinary share and accompanying warrant are being sold at a combined purchase price of $5.60, with the warrants being immediately exercisable and valid for a period of five years from the date of issuance.
The proceeds from the offering, before the deduction of fees and other expenses, will be directed towards meeting the working capital needs of Gorilla Technology. A.G.P./Alliance Global Partners (NYSE:GLP) is serving as the exclusive placement agent for the offering.
In a strategic move, Gorilla Technology has also agreed to adjust the exercise price of the outstanding Series A and Series B ordinary share purchase warrants, previously issued to the same institutional investors, to the same $5.90 per share. These warrants were part of prior offerings conducted in September 2023 and February 2024.
The offering is supported by a shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) on August 17, 2023, which was declared effective on August 29, 2023. Details of the offering will be available in the final prospectus supplement and accompanying prospectus filed with the SEC.
This news is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the securities in any state or jurisdiction where such an offer, solicitation, or sale would be unlawful.
In other recent news, Gorilla Technology Group Inc. has reported a significant year of growth in 2023, with revenues soaring to $64.7 million, marking a 189% increase year-over-year, and a net profit of $19.9 million. This marks the company's first profitable year since its transition from a special purpose acquisition company.
In addition, the company announced a strategic partnership with SINTRONES Technology Corp., aiming to advance autonomous driving and fleet management systems. This collaboration is projected to set new industry benchmarks and accelerate smart city innovations.
Gorilla Technology also initiated a 1-for-10 reverse stock split, aiming to enhance its market position and appeal to institutional investors. This move anticipates a strong business outlook for 2024. In another development, the company entered into a Memorandum of Understanding with Thames Freeport to enhance the area's infrastructure, aiming to develop Thames Freeport into an integrated smart city.
These recent developments illustrate Gorilla Technology's commitment to its growth strategy, focusing on partnerships, financial stability, and innovative projects. Despite these advancements, the company anticipates short-term working capital pressure until payment is received from the Egyptian government for their ongoing Air Gap Network project. However, the company remains confident in its strategic initiatives and market expansions.
InvestingPro Insights
Gorilla Technology Group Inc. (NASDAQ: GRRR) is navigating a challenging market, reflected in the significant decline in its share price over the last year. InvestingPro data shows a 1-year price total return of -70.15%, indicating investor concerns which may be linked to the analysts' expectations that the company will not be profitable this year. However, the company has managed to generate substantial revenue growth, with the last twelve months as of Q4 2023 witnessing an impressive 188.7% increase.
Despite the price drop, Gorilla Technology trades at a low earnings multiple, with a P/E Ratio (Adjusted) of 3.85 as of Q4 2023, which could suggest that the stock is undervalued relative to its earnings. Additionally, the company's market capitalization stands at $51.89 million USD, reflecting the current market sentiment and valuation of the company.
InvestingPro Tips highlight two analysts revising their earnings upwards for the upcoming period, which could signal a positive shift in expectations. Moreover, the company operates with a moderate level of debt, which might provide some financial flexibility in its operations and growth strategies. For investors looking for more in-depth analysis, there are additional InvestingPro Tips available on InvestingPro. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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