PLANO, Texas - Dogness (International) Corporation (NASDAQ: DOGZ), a pet product manufacturer, has announced a private placement transaction, securing $5 million in gross proceeds from the sale of 2 million Class A common shares at $2.50 each. The shares were sold to certain non-U.S. investors in a deal exempt from registration under the Securities Act of 1933, according to Regulation S.
The purchasers acknowledge that the shares have not been registered under the Securities Act and cannot be sold or disposed of without registration or an exemption. The transaction's closing is contingent upon customary conditions. This placement does not constitute an offer to sell or a solicitation of an offer to buy the shares in any jurisdiction where such actions would be illegal without proper registration or exemptions under the relevant securities laws.
Founded in 2003, Dogness has established itself in the pet care market with a range of smart, hygiene, health and wellness, and leash products designed to enhance the relationship between pets and their caregivers. The company boasts a vertically integrated supply chain and research and development capabilities that have resulted in over 200 patents and pending patents, distributing its products globally through chain stores and distributors.
InvestingPro Insights
In light of Dogness (International) Corporation's recent private placement transaction, investors may want to consider several key metrics and insights provided by InvestingPro. With a market capitalization of $59.83 million, Dogness appears to be a smaller player in the market, which may influence its stock behavior and investment profile.
The company's stock has experienced significant volatility, with an InvestingPro Tip indicating high price volatility in general. This is corroborated by a notable price decline over the last month and year, with a 1 Month Price Total Return of -18.7% and a 1 Year Price Total Return of -70.48%. Despite these challenges, the stock has seen a strong return over the last three months, boasting a 58.92% 3 Month Price Total Return, which may interest short-term investors looking for recent upticks in performance.
Financially, Dogness has faced some headwinds. The company's P/E Ratio stands at -8.21, reflecting its current unprofitability, a detail echoed by an InvestingPro Tip that Dogness has not been profitable over the last twelve months. Moreover, the company's revenue growth has contracted, with a -28.25% change in the last twelve months as of Q2 2024, and an even steeper quarterly revenue growth decline of -35.81% in Q2 2024. These figures suggest that Dogness is navigating through a challenging period, which could impact investor sentiment.
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