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KULR Technology Group expands offering by $50M

EditorAhmed Abdulazez Abdulkadir
Published 12/28/2024, 12:20 AM
KULR
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KULR Technology Group, Inc. (NYSE American: KULR), a company specializing in electronic components and accessories with a market capitalization of $1.03 billion and an impressive year-to-date return of over 1,700%, announced today an expansion of its at-the-market offering.

According to InvestingPro analysis, the stock has shown significant momentum with strong returns across multiple timeframes. The amendment to its existing Sales Agreement with Craig-Hallum Capital Group LLC, effective Thursday, allows for an additional $50 million of common stock to be offered.

This move follows the original Sales Agreement from July 3, 2024, which is now modified to adjust the agent's compensation to 2.5% of the gross proceeds from the sale of shares. The company has filed a prospectus supplement under the Sales Agreement for the additional offering amount.

The expansion of the offering and the amendment to the Sales Agreement were both formalized on December 26, 2024. KULR Technology Group has also provided a legal opinion regarding the issuance of the new shares covered by the current prospectus supplement, ensuring compliance with legal standards.

The additional $50 million in common stock is expected to provide the company with increased financial flexibility. The specific uses for the proceeds have not been disclosed, but such capital raises are often used for general corporate purposes, including operational expenses, research and development, and potential acquisitions. This capital raise comes as InvestingPro data shows KULR generated $9.7 million in revenue over the last twelve months, with a current ratio of 0.81, indicating potential liquidity challenges.

Investors and market watchers will be monitoring the uptake of the offering and its impact on KULR's financial position and stock performance. The company's strategic initiatives in the electronics sector are closely watched, given the industry's rapid growth and technological advancements.

With an EBITDA of -$14.45 million in the last twelve months, InvestingPro subscribers can access 15+ additional exclusive insights and a comprehensive Pro Research Report for deeper analysis of KULR's financial health and growth prospects.

The information regarding this financial activity is based on the latest 8-K filing by KULR Technology Group with the Securities and Exchange Commission.

In other recent news, KULR Technology Group has made several significant strides. The company successfully regained NYSE American compliance, ending its noncompliance status. This achievement came after demonstrating adherence to the relevant listing standards for two consecutive quarters. Additionally, KULR has announced a U.S. Navy contract to enhance its Internal Short Circuit technology, a key safety feature for military and commercial applications.

The company has also revealed plans to deploy the KULR ONE Space battery on a SpaceX mission in 2026, marking a pivotal step in the development of their space battery systems. On the financial front, KULR reported a record third-quarter revenue of approximately $3.19 million, a 5% increase from the previous year, despite a decline in product revenue.

In a strategic shift, the company has adopted bitcoin as a primary reserve asset, allocating up to 90% of its surplus cash to the cryptocurrency. KULR Technology Group also expanded its stock offering to $46 million to bolster its financial position. The company's shareholders approved the re-election of Michael Mo, Joanna D. Massey, and Donna H. Grier as directors, and ratified Marcum LLP as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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