NEW YORK - Applied UV, Inc. (NASDAQ:AUVI; AUVIP), a company specializing in smart building technology solutions, has announced the signing of definitive agreements with institutional investors for a registered direct offering and a concurrent private placement.
The transactions are expected to yield approximately $2.76 million in aggregate gross proceeds, in line with the available amount under the effective shelf registration statement.
The company has arranged for the sale of 1,726,875 shares of common stock or equivalent pre-funded warrants, alongside common warrants in a private placement that allows for the purchase of up to 518,065 additional shares at an initial exercise price of $16.00 per share.
The common stock is priced at $1.60 per share, with the pre-funded warrants set at $1.5999 each, just below the public offering price minus the exercise price of $0.0001 per warrant. These pre-funded warrants are exercisable immediately and will be available until they have been exercised in full.
The common warrants, exercisable immediately upon registration, have a five-year expiration from the date of issue. The closing of the transactions is anticipated around April 1, 2024, subject to customary closing conditions.
Applied UV intends to utilize the net proceeds to support large orders from notable clients such as Siemens, Sherwin Williams, and Arco Murray within its Smart Building Technologies division, as well as for other general corporate purposes.
Aegis Capital Corp. is serving as the exclusive placement agent for the offerings, with Sichenzia Ross Ference Carmel LLP and Kaufman & Canoles, P.C. providing legal counsel to the company and the placement agent, respectively.
The direct offering is conducted under a shelf registration statement on Form S-3, filed with the U.S. Securities and Exchange Commission (SEC) and declared effective on July 12, 2022. A final prospectus supplement and accompanying base prospectus will be filed with the SEC.
The private placement's common warrants are not registered under the Securities Act of 1933 and are offered only to accredited investors. Applied UV has committed to filing registration statements with the SEC to cover the resale of shares issuable upon the exercise of the common warrants.
This news is based on a press release statement from Applied UV, Inc. and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
InvestingPro Insights
As Applied UV, Inc. engages in capital-raising activities to fuel its growth in smart building technologies, the financial health and market performance of the company provide a backdrop to these developments.
According to InvestingPro data, Applied UV has a market capitalization of $2.68 million and has experienced a significant revenue growth of 99.1% over the last twelve months as of Q3 2023. This is a positive signal for potential investors looking at the company's ability to scale up operations and generate sales. Yet, the company's Price / Book ratio stands at a low 0.15, which could be indicative of the market's undervaluation of the company's assets relative to its stock price.
Despite the promising growth in revenue, InvestingPro Tips suggest a challenging financial situation for Applied UV, which operates with a significant debt burden and may have trouble making interest payments on its debt. This is further complicated by analysts' expectations that the company will not be profitable this year. Moreover, the stock has been trading with high price volatility and has seen a substantial decline over the past year, with a 1 Year Price Total Return of -98.55% as of the latest data.
For investors and potential stakeholders considering participating in Applied UV's offerings, these insights could be crucial in making informed decisions. For more detailed analysis and additional InvestingPro Tips for Applied UV, including the company's cash burn rate and short-term obligations, interested parties can visit https://www.investing.com/pro/AUVI. With the use of the coupon code PRONEWS24, users can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, granting access to a total of 17 InvestingPro Tips that provide a deeper understanding of the company's financial position and market dynamics.
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