FREMONT, Calif. - Actelis Networks, Inc. (NASDAQ:ASNS), a provider of networking solutions for IoT applications, has entered into a definitive agreement for the immediate exercise of outstanding warrants, which is expected to generate approximately $3 million in gross proceeds. The transaction involves warrants originally issued in May and September 2023, with an exercise price of $2.75 per share.
The company stated that the proceeds from the warrant exercise would be used as working capital for general corporate purposes. H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering.
In addition to the exercised warrants, Actelis Networks will issue new Series A-1 and Series A-2 warrants to purchase up to 999,670 shares of common stock each, at an exercise price of $2.00 per share. These warrants will be immediately exercisable upon issuance, with the Series A-1 warrants valid for five and a half years and the Series A-2 warrants for twenty-four months.
The offering is scheduled to close on June 6, 2024, subject to customary closing conditions. The newly issued warrants were offered in a private placement under an exemption from the registration requirements of the Securities Act of 1933 and have not been registered under the Act. Consequently, they may not be offered or sold in the United States without registration with the SEC or an applicable exemption from such requirements.
Actelis Networks has committed to filing a registration statement with the SEC for the resale of the shares of common stock issuable upon exercise of the new warrants.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities and is issued in compliance with the regulations governing such announcements.
The information provided is based on a press release statement from Actelis Networks, Inc.
In other recent news, Actelis Networks, a provider of networking solutions for IoT applications, has made significant strides in its operations. The company secured orders for its cyber-hardened technology to be implemented at three U.S. military bases, following recent cybersecurity certifications.
In another development, Actelis Networks announced plans to acquire a majority stake in Quality Industrial Corporation, a company specializing in solutions for the industrial and energy sectors based in Dubai. The acquisition is expected to create a combined entity with a proforma revenue of $17 million in 2023, with significant growth anticipated for 2024.
Additionally, Actelis Networks recently completed a traffic network upgrade in Bakersfield, California, enhancing the city's traffic management system. The company's patented hybrid-fiber technology was deployed to facilitate high-speed, real-time data transmission across the city's traffic intersections.
Actelis Networks also secured a $2.3 million contract with the Washington D.C. Department of Transportation to provide a hybrid-fiber intelligent networking solution, expected to modernize the city's transportation infrastructure.
These are recent developments that illustrate the company's growth and expansion in its field. Actelis Networks' recent activities reflect its commitment to providing robust and efficient networking solutions across various sectors, including government, transportation, and utility sectors.
InvestingPro Insights
As Actelis Networks, Inc. (NASDAQ:ASNS) embarks on a strategy to strengthen its capital through the exercise of warrants, a closer look at the company's financial health and stock performance reveals several challenges. Actelis Networks operates with a significant debt burden and is quickly burning through cash, according to InvestingPro Tips. Furthermore, the company's short-term obligations currently exceed its liquid assets, which may raise concerns about its financial stability amidst the planned capital raise.
InvestingPro Data indicates that Actelis Networks has a market capitalization of $1.58 million USD, reflecting a small-scale operation in the competitive networking solutions market. The company's revenue for the last twelve months as of Q1 2024 stands at $4.48 million USD, but it is important to note a significant decrease in revenue growth of -49.11% during the same period. Moreover, the price of Actelis Networks' stock has dropped by -83.68% over the past year, which might suggest investor skepticism about the company's prospects.
For investors and potential stakeholders considering the long-term viability of Actelis Networks, these InvestingPro Tips serve as valuable indicators of the company's current financial trajectory. There are 11 additional tips available on InvestingPro that could provide further insights into the investment potential of Actelis Networks. To access these, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a comprehensive analysis of the company's financials and market position.
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