MESA, Ariz. - Iveda Solutions, Inc. (NASDAQ: IVDA), a provider of cloud-based video AI search and surveillance technologies, has initiated a registered direct offering and concurrent private placement, expected to close on September 6, 2024. The company aims to raise $2.15 million by issuing 5 million shares of common stock or pre-funded warrants at $0.43 each.
The offering also includes Series A and Series B unregistered warrants for an additional 10 million shares, exercisable post-stockholder approval at the same price. Series A warrants will be valid for five years, while Series B warrants will last 18 months after approval.
H.C. Wainwright & Co. is serving as the exclusive placement agent for the transaction. Iveda intends to allocate the net proceeds for working capital and general corporate purposes.
The shares and pre-funded warrants are being offered under a shelf registration statement filed with the SEC on January 24, 2024, and effective as of February 7, 2027. The prospectus supplement and accompanying prospectus will be filed with the SEC and will be available on their website.
The unregistered warrants and shares are offered through a private placement, in compliance with the Securities Act of 1933. These securities have not been registered under the Securities Act or any state securities laws and are subject to restrictions on transfer.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy securities. The sale of these securities will not be lawful in any jurisdiction where such an offer, solicitation, or sale would require registration or qualification under the securities laws of such jurisdiction.
The information provided in this article is based on a press release statement from Iveda Solutions, Inc.
In other recent news, Iveda announced a patent pending for its LevelNOW product, an IoT sensor solution designed for real-time monitoring of liquid storage management. The technology is expected to address issues such as leaks, evaporation, and theft prevalent in industries like oil and gas. Iveda's solution has been adopted by a major oil company in Australia, showcasing its efficiency and potential for broader use. The metal drum and intermediate bulk container market, where Iveda's IoT sensors can be applied, is predicted to grow to over $24.1 billion by 2030.
In addition to this, Iveda has formed a strategic partnership with The Arab Organization for Industrialization (AOI) and ZeroTech to integrate its AI-powered intelligent video search technology, IvedaAI, into ZeroTech's security offerings in Egypt. This collaboration is expected to enhance security systems and offer safety benefits to communities. The partnership aligns with Egypt's initiative to establish 38 new smart cities by 2050, and it is projected to strengthen ZeroTech's position in the Egyptian AI market, which is expected to surpass $877 million in 2024. These are among the recent developments involving Iveda.
InvestingPro Insights
As Iveda Solutions, Inc. (NASDAQ: IVDA) embarks on its capital raising journey with a registered direct offering and concurrent private placement, potential investors may find the following InvestingPro Insights valuable for making informed decisions. The company's market capitalization stands at a modest $7.35 million, reflecting its size within the technology sector. Despite a challenging period, Iveda has exhibited a significant return over the last week with an 8.26% price total return, and an even stronger return over the last month at 22.26%, signaling a potential rebound in investor confidence.
However, it's important to note that the company's revenue has decreased by 53.81% over the last twelve months as of Q2 2024, and it has experienced a quarterly revenue decline of 35.86% in Q2 2024. This financial landscape is further complicated by the fact that Iveda holds a negative P/E ratio of -1.91, indicating that it is not currently profitable. Analysts forecast that profitability will not be achieved this year, an InvestingPro Tip that underscores the speculative nature of the investment.
Investors should also consider the company's cash position and liquidity. An InvestingPro Tip reveals that Iveda holds more cash than debt on its balance sheet, which is a positive sign for its financial stability. Moreover, liquid assets exceed short-term obligations, suggesting that the company has the means to cover its immediate liabilities. For those looking for more detailed analysis and additional InvestingPro Tips, there are 11 more tips available on the Iveda Solutions InvestingPro page.
As Iveda Solutions navigates the competitive landscape of cloud-based AI technologies, these InvestingPro Insights may serve as a guide for investors considering participation in the offering or evaluating the company's stock for potential investment opportunities.
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