ToughBuilt Industries Announces Pricing of $3.5 Million Public Offering
14 Februar 2024 - 2:00PM
ToughBuilt Industries, Inc. (“ToughBuilt” or the “Company”)
(NASDAQ: TBLT; TBLTW), today announced the pricing of a public
offering of 772,628 shares of its common stock (or pre-funded
warrants in lieu thereof), together with warrants to purchase up to
772,628 shares of its common stock at an offering price to the
public of $4.53 per share (or pre-funded warrant) and associated
warrant. The warrants will have an exercise price of $4.405 per
share, be exercisable upon issuance, and will expire five years
following the date of issuance. The closing of the offering is
expected to occur on or about February 16, 2024, subject to the
satisfaction of customary closing conditions.
H.C. Wainwright & Co. is acting as the exclusive placement
agent for the offering.
The gross proceeds to the Company from the
offering are expected to be approximately $3.5 million, before
deducting the placement agent’s fees and other offering expenses
payable by ToughBuilt. The Company intends to use the net proceeds
from this offering for general corporate purposes, including
working capital.
A registration statement on Form S-1 (File No.
333-276008) relating to these securities has been filed with the
Securities and Exchange Commission, or the SEC, and was declared
effective by the SEC on February 13, 2024. The offering will be
made only by means of a prospectus, which is part of the effective
registration statement. A preliminary prospectus relating to the
offering has been filed with the SEC. When available, electronic
copies of the final prospectus may be obtained for free on the
SEC’s website located at http://www.sec.gov and may also be
obtained by contacting H.C. Wainwright & Co., LLC at 430 Park
Avenue, 3rd Floor, New York, NY 10022, by phone at (212) 856-5711
or e-mail at placements@hcwco.com.
The Company also has agreed to amend certain
existing warrants to purchase up to an aggregate of 279,278 shares
of the Company’s common stock that were previously issued in June
2023 and August 2023 and have exercise prices of $18.85 and
$20.8065 per share, respectively, for $0.125 per amended warrant,
effective upon the closing of the offering, such that the amended
warrants will have a reduced exercise price of $4.405 per
share.
This press release does not constitute an offer
to sell or the solicitation of an offer to buy any of the
securities described herein, nor shall there be any sale of these
securities in any state or other jurisdiction in which such an
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
other jurisdiction.
ABOUT TOUGHBUILT
INDUSTRIES, INC.ToughBuilt is an innovative advanced
product developer, manufacturer, and distributor with emphasis on
innovative products, currently focused on tools and other
accessories for the professional and do-it-yourself construction
industries. We market and distribute various home improvement and
construction product lines for both the do-it-yourself and
professional markets under the TOUGHBUILT brand name, within the
global multibillion dollar per year tool market industry. All our
products are designed by our in-house design team. Since launching
product sales in 2013, we have experienced significant annual sales
growth. Our current product line includes three major categories,
with several additional categories in various stages of
development, consisting of Hand tools, Storage and Job Site support
equipment. Our mission is to provide products to the building and
home improvement communities that are innovative, of superior
quality derived in part from enlightened creativity for our end
users while enhancing performance, improving well-being, and
building high brand loyalty. Additional information about the
Company is available at: https://www.toughbuilt.com/.
FORWARD-LOOKING STATEMENTSThis
press release contains “forward-looking statements.” Such
statements include, but are not limited to, statements regarding
the intended use of proceeds from the offering and statements
concerning the anticipated closing and closing date of the offering
and may be preceded by the words “intends,” “may,” “will,” “plans,”
“expects,” “anticipates,” “projects,” “predicts,” “estimates,”
“aims,” “believes,” “hopes,” “potential” or similar words.
Forward-looking statements are not guarantees of future
performance, are based on certain assumptions, and subject to
various known and unknown risks and uncertainties, many of which
are beyond the Company’s control, and cannot be predicted or
quantified and consequently, actual results may differ materially
from those expressed or implied by such forward-looking statements.
Such risks and uncertainties include, without limitation, risks and
uncertainties associated with, (i) supply chain disruptions, (ii)
market acceptance of our existing and new products, including the
Company’s StackTech® mobile stacking toolbox system (iii) delays in
bringing products to key markets, (iv) an inability to secure
regulatory approvals for the ability to sell our products in
certain markets, (v) intense competition in the industry from much
larger, multinational companies, (vi) product liability claims,
(vii) product malfunctions, (viii) our limited manufacturing
capabilities and reliance on subcontractors for assistance, (ix)
our efforts to successfully obtain and maintain intellectual
property protection covering our products, which may not be
successful, (x) our reliance on single suppliers for certain
product components, (xi) the fact that we will need to raise
additional capital to meet our business requirements in the future
and that such capital raising may be costly, dilutive or difficult
to obtain, (xii) the fact that we conduct business in multiple
foreign jurisdictions, exposing us to foreign currency exchange
rate fluctuations, logistical and communications challenges,
burdens and costs of compliance with foreign laws and political and
economic instability in each jurisdiction, (xiii) the consummation
of the offering, (xiv) our satisfaction of the closing conditions
in this offering and our use of the net proceeds in this offering,
and (xv) market and other conditions. More detailed information
about the Company and the risk factors that may affect the
realization of forward looking statements is set forth in the
Company’s filings with the Securities and Exchange
Commission (SEC), including the Company’s Annual Report on
Form 10-K and its Quarterly Reports on Form 10-Q. Investors and
security holders are urged to read these documents free of charge
on the SEC’s web site at http://www.sec.gov. The Company
assumes no obligation to publicly update or revise its
forward-looking statements as a result of new information, future
events or otherwise, except as required by law.Investor
Relations Contact:
KCSA Strategic
Communications
David Hanover
ToughBuilt@KCSA.com
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