ONTARIO - Nature's Miracle Holdings Inc. (NASDAQ: NMHI), a company specializing in vertical farming technology and infrastructure, has announced the terms of its public offering. The offering includes 24,137,360 units at a price of $0.1118 each, and 2,696,271 pre-funded units priced at $0.1117 per unit, aiming to raise approximately $3 million before underwriting discounts and other expenses.
The units in this offering consist of shares of common stock, Series A Warrants, and Series B Warrants, with the pre-funded units including pre-funded warrants in place of common stock. The closing of the offering is anticipated to occur around November 12, 2024, pending customary closing conditions.
D. Boral (OTC:BOALY) Capital LLC is serving as the sole book running manager for the offering, while legal counsel is provided by Sichenzia Ross Ference Carmel LLP for Nature's Miracle and Lucosky Brookman LLP for D. Boral Capital.
The offering follows the effectiveness of the Company's registration statement on Form S-1, amended on November 6, 2024, and initially filed on October 3, 2024. The final prospectus related to the offering will be available on the SEC's website.
Nature's Miracle, through its subsidiaries Visiontech Group, Inc. and Hydroman, Inc., supplies equipment such as grow lights and hydroponic products to indoor growers in North America. The company is also expanding its manufacturing presence in the region with a grow-light assembly plant in Manitoba, Canada.
This release contains forward-looking statements that involve risks and uncertainties, including the successful closing of the offering and the intended use of proceeds. The company cautions that these statements are not guarantees of future performance and involve known and unknown risks.
The information presented in this article is based on a press release statement from Nature's Miracle Holdings Inc.
In other recent news, Nature's Miracle Holding Inc. announced a strategic rebranding of its subsidiary, Hydroman Inc., to Hydroman Electric Corporation, marking a pivot towards the electric vehicle sector. The company also revealed a $2.1 million reduction in trade payable debt through an agreement with Visiontech Group, Inc., and Uninet Global Inc. On the revenue front, Nature's Miracle secured a $5.1 million sales agreement with What Rebates LLC and a $2.4 million purchase order from a major indoor grower in California for its Efinity brand grow lights, expected to significantly enhance the company's revenue in late 2024.
However, Nature's Miracle faces a potential Nasdaq delisting due to non-compliance with market value requirements. The company plans to appeal this decision and present a plan to regain compliance. In a notable executive transition, the company's Chief Operating Officer, Darin Carpenter, has moved to a consulting role.
In addition, Nature's Miracle has entered into an exclusive distribution agreement with Vaighai Agro Products Ltd. for distributing Gro-Med Coco Coir Substrate products across the U.S. However, plans for a merger with Agrify Corporation have been mutually terminated. These are the latest developments in the company's operations.
InvestingPro Insights
As Nature's Miracle Holdings Inc. (NASDAQ: NMHI) announces its public offering terms, InvestingPro data provides additional context for investors. The company's revenue for the last twelve months as of Q2 2024 stood at $9.63 million, with a concerning revenue growth decline of 18.29% over the same period. This decline in revenue aligns with the company's need to raise capital through the current offering.
InvestingPro Tips highlight some challenges faced by NMHI. The company suffers from weak gross profit margins, which is evident in the negative gross profit of $0.58 million and a gross profit margin of -6.04% for the last twelve months as of Q2 2024. This financial strain is likely a driving factor behind the company's decision to pursue this public offering.
Another InvestingPro Tip notes that NMHI's stock price has fallen significantly over the last year. This is corroborated by the staggering year-to-date price total return of -98.65% as of the latest data. The substantial price decline may explain the company's strategy to offer units at a relatively low price point of $0.1118 each in an attempt to attract investors.
It's worth noting that InvestingPro offers 5 additional tips for NMHI, providing a more comprehensive analysis for investors considering this offering. These insights can be particularly valuable given the company's current financial position and the terms of its public offering.
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