LONDON - Gorilla Technology Group Inc. (NASDAQ:GRRR), a provider of Security Intelligence and other technology solutions, has secured approximately $10 million through a registered direct offering, the company announced today. The transaction involves the sale of 10,000 Series B convertible preference shares at $1,000 each to institutional investors.
The Series B preference shares, convertible into ordinary shares at $1.10 per share, come with additional purchase warrants. These warrants allow investors to buy up to 8,250,000 ordinary shares at an exercise price of $1.50, effective immediately and expiring five years from the issuance date. The offering is slated to close around February 20, 2024, pending customary closing conditions.
A.G.P./Alliance Global Partners (NYSE:GLP) is serving as the sole placement agent for the offering. The proceeds, before fees and expenses, are earmarked for Gorilla's working capital requirements.
The securities are being offered under a shelf registration statement filed with the Securities and Exchange Commission on August 17, 2023, and declared effective on August 29, 2023. A final prospectus supplement and accompanying prospectus will be filed with the SEC and will be obtainable from A.G.P./Alliance Global Partners.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in any state or jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The information in this article is based on a press release statement.
InvestingPro Insights
Gorilla Technology Group Inc.'s (NASDAQ:GRRR) recent capital raise through a direct offering reflects its strategic efforts to strengthen its balance sheet and fund its operational needs. Investors considering Gorilla Technology's financial position and future prospects may find the following insights from InvestingPro particularly informative:
The company's market capitalization stands at a modest $64 million, which, combined with a price-to-earnings (P/E) ratio of 17.12, suggests that the market is pricing the company with expectations of future earnings growth. This is further supported by a significant revenue growth of 30.69% over the last twelve months as of Q3 2023. The gross profit margin during the same period was a robust 74.56%, indicating efficient cost management relative to revenue.
On the performance front, Gorilla Technology's stock has experienced notable volatility. An InvestingPro Tip highlights that the stock generally trades with high price volatility, which is evident from the 59.07% return over the last month, contrasted by a substantial 53.06% drop over the last six months and an 87.25% decline over the last year. These swings in price may attract traders looking for short-term opportunities, but could also signal caution for long-term investors.
For those considering the company's future revenue potential, an InvestingPro Tip notes that analysts anticipate sales growth in the current year, which may be a positive sign for investors looking for growth opportunities. However, another InvestingPro Tip points out that analysts do not anticipate the company will be profitable this year, which may require a careful assessment of the company's path to profitability.
For more detailed analysis and additional InvestingPro Tips, interested parties may visit https://www.investing.com/pro/GRRR. There are currently 15 additional tips available on InvestingPro that could guide investors in making more informed decisions. To enhance your investing experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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