A2Z announces share offering at $0.75 each

TEL AVIV - A2Z Cust2Mate Solutions Corp. (NASDAQ:AZ), a provider of innovative technology solutions, has confirmed entering into a securities purchase agreement with certain accredited investors. The agreement outlines a registered direct offering of up to 5,409,999 common shares at a price of $0.75 per share, with the transaction expected to conclude today.

The offering is made pursuant to a shelf registration statement on Form F-3, which was declared effective by the Securities and Exchange Commission (SEC) on April 21, 2023. Details of the offering will be available through a prospectus supplement and accompanying prospectus filed with the SEC, accessible via the SEC's website.

A2Z anticipates using the net proceeds from this offering for working capital and general corporate purposes. The company has stated that no placement agent was involved in the offering process.

The company's flagship product, a mobile self-checkout shopping cart, aims to enhance the retail shopping experience by allowing customers to scan and pay for products directly within the cart, avoiding conventional checkout lines. This innovation seeks to provide efficiency for both customers and retailers, reducing shelf-space and manpower needs while offering advanced management capabilities for store managers.

It is important to note that the securities mentioned are not being offered in Canada and may not be sold to Canadian residents.

This press release contains forward-looking statements, which are based on the company's current expectations and are subject to various risks and uncertainties. These risks include market conditions and other factors that could affect the company's operations and financial performance. The company has cautioned readers not to place undue reliance on these statements, which only reflect the company's position as of the date of the press release.

The information presented in this article is based on a press release statement from A2Z Cust2Mate Solutions Corp.

In other recent news, A2Z Cust2Mate Solutions Corp. has secured new global framework agreements with Nayax Capital, providing financing options for the sale or lease of A2Z's smart carts. The financing options, which are subject to individual terms and approval by Nayax Capital, are part of a joint venture formed between A2Z and Nayax Ltd. aimed at promoting the sales of A2Z Cust2Mate’s smart cart solution integrated with Nayax's payment solution.

In addition, A2Z Cust2Mate and Nayax Ltd. have announced a strategic alliance to launch the new smart cart technology, Cust2Mate 3.0. This technology, which integrates Nayax's automated retail mobile payment system with A2Z Cust2Mate's smart cart platform, is set to roll out globally, with the first smart carts launching in France.

Further, A2Z Cust2Mate has expanded its smart cart technology in Paris, debuting its next-generation Cust2Mate 3.0 smart shopping carts at a Monoprix franchise store. This marks the first implementation in collaboration with IR2S, a retail technology integrator, with a goal to deploy 30,000 smart carts across various French retail chains by 2026.

These recent developments are based on statements from both A2Z Cust2Mate Solutions Corp. and Nayax Ltd., and are subject to risks and uncertainties that could affect actual results.

InvestingPro Insights

A2Z Cust2Mate Solutions Corp.'s recent registered direct offering comes at a critical time for the company, as revealed by InvestingPro data. With a market capitalization of just $38.33 million, A2Z is operating in a challenging financial environment. The company's revenue for the last twelve months as of Q2 2024 stood at $7.14 million, with a concerning revenue decline of 48.78% over the same period.

InvestingPro Tips highlight that A2Z is "quickly burning through cash" and "not profitable over the last twelve months." These factors likely contributed to the company's decision to raise additional capital through the share offering. The tip noting that "short term obligations exceed liquid assets" further underscores the urgency of this funding round.

Despite these challenges, A2Z's stock has shown resilience in the short term. InvestingPro data indicates a strong return of 84.93% over the last three months, suggesting some investor optimism about the company's innovative self-checkout shopping cart technology.

It's worth noting that A2Z "operates with a moderate level of debt," which could provide some flexibility as it seeks to commercialize its retail technology solutions. However, potential investors should be aware that the stock "generally trades with high price volatility," which aligns with the nature of early-stage technology companies in the retail sector.

For those interested in a deeper analysis, InvestingPro offers 15 additional tips for A2Z Cust2Mate Solutions Corp., providing a more comprehensive view of the company's financial health and market position.

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