WESTMINSTER, MA - TechPrecision Corporation (NASDAQ:TPCS), a manufacturer of large-scale, metal fabricated and machined precision components, announced today it has completed a private placement of securities. The transaction involved the sale of 666,100 shares of common stock and equal warrants to accredited investors, raising gross proceeds of approximately $2.3 million.
The private placement, closed today, was priced at $3.45 per share, including a warrant to purchase one additional share at an exercise price of $4.00, exercisable six months after issuance and expiring five years from the issue date. Wellington Shields & Co. LLC served as the exclusive placement agent for this offering.
The securities sold in this private placement have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and were offered under an exemption from registration. The company has agreed to file a registration statement with the Securities and Exchange Commission within 30 days, covering the resale of the shares and warrants issued, and to use its best efforts to have it declared effective as soon as practical.
TechPrecision, through its subsidiaries Ranor, Inc. and STADCO, specializes in the defense, aerospace, and precision industrial markets, providing end-to-end solutions for custom fabrication, machining, assembly, inspection, and testing.
InvestingPro Insights
As TechPrecision Corporation (NASDAQ:TPCS) embarks on its recent capital-raising initiative through a private placement of securities, potential and current investors may find the following insights from InvestingPro valuable for their analysis.
InvestingPro Data highlights that TechPrecision has a market capitalization of approximately $31.11 million, reflecting the scale of the company within its industry. The company's revenue over the last twelve months as of Q3 2024 stands at $30.5 million, with a notable gross profit margin of 12.26%. These figures suggest that while the company is capable of generating significant sales, its ability to convert those sales into gross profit is an area that could be improved, as also indicated by the InvestingPro Tips.
InvestingPro Tips shed light on some challenges the company faces. TechPrecision's price has experienced a significant decline over the last year, with a 52.74% drop in the one-year total return as of the date specified. Additionally, the company is not currently profitable, with a negative P/E ratio of -10.09, and does not pay dividends to shareholders, which may influence investor decisions, especially those looking for income-generating investments.
For those interested in a deeper dive into the financial health and future prospects of TechPrecision, there are additional InvestingPro Tips available. These tips can provide more nuanced information, such as the company's ability to manage its debt and the implications of its weak gross profit margins. With these insights, investors can make more informed decisions about the potential risks and rewards associated with investing in TechPrecision.
For a limited time, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro, where you can access a total of 6 additional InvestingPro Tips for TechPrecision Corporation, offering a comprehensive analysis that could be crucial for your investment strategy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.