A2Z Cust2Mate announces registered direct offering

TEL AVIV - A2Z Cust2Mate Solutions Corp. (NASDAQ:AZ), a provider of innovative technology solutions, has disclosed the launch of a registered direct offering. The transaction involves the sale of 642,860 common shares at a price of $2.80 each, with an expected closing date on or around October 15, 2024, pending customary closing conditions.

The company, known for its mobile self-checkout shopping cart, aims to use the net proceeds from the offering to bolster its working capital and support general corporate activities. A2Z has confirmed that the offering will be conducted without the assistance of a placement agent.

The shares are being offered under a previously declared effective shelf registration statement by the Securities and Exchange Commission (SEC) on April 21, 2023. Relevant documents, including a prospectus supplement and the accompanying prospectus, will be made available through the SEC's website.

A2Z's flagship product, the Cust2Mate smart shopping cart, is designed to enhance the retail experience by allowing customers to scan and pay for items directly within the cart, thus reducing checkout times. The company emphasizes that this innovation leads to more efficient customer experiences, optimized shelf-space utilization, and improved management capabilities for store operators.

The announcement also clarifies that these securities are not available for sale in Canada or to Canadian residents, and the press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction where such an action would be unlawful without registration or qualification under the securities laws of that jurisdiction.

The press release contains forward-looking statements regarding the company's expectations about the closing of the offering and the intended use of proceeds. However, these statements are subject to various risks and uncertainties, including market conditions and other factors that could affect the company's operations and actual results.

This news summary is based on a press release statement from A2Z Cust2Mate Solutions Corp.

In other recent news, A2Z Cust2mate Solutions Corp. has announced several significant developments. The company reported a reverse share split of its common shares, primarily to comply with Nasdaq's minimum bid price requirement. Additionally, A2Z Cust2mate has entered into a securities purchase agreement for a registered direct offering of up to 5,409,999 common shares at a price of $0.75 per share.

A2Z Cust2mate has also expanded its operations in Mexico and Central America through a framework agreement with Trixo, a retail technology integrator in the region. This partnership is expected to enhance the deployment and support of A2Z's smart cart technology across the region.

Furthermore, the company has secured new global framework agreements with Nayax Capital, providing financing options for the sale or lease of A2Z's smart carts. This comes as 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 a related development, A2Z Cust2mate and Nayax Ltd. have announced a strategic alliance to launch a new smart cart technology, Cust2Mate 3.0. The first carts are set to launch in France, with plans to roll out tens of thousands of these payment-enabled carts globally.

Finally, 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. These recent developments are based on statements from both A2Z Cust2mate Solutions Corp. and Nayax Ltd.

InvestingPro Insights

As A2Z Cust2Mate Solutions Corp. (NASDAQ:AZ) moves forward with its registered direct offering, recent data from InvestingPro sheds light on the company's financial position and market performance.

The company's market capitalization stands at $55.58 million, reflecting its current valuation in the market. This relatively small cap size aligns with A2Z's status as an emerging technology solutions provider in the retail space.

InvestingPro data reveals that A2Z has experienced a significant return over the last week, with a 34.68% price increase. This short-term surge could be related to investor anticipation of the announced offering. Moreover, the stock has shown strong momentum over longer periods, with a 68.86% return over the last three months and an impressive 149.77% return over the past six months.

However, these positive price movements come with a caveat. An InvestingPro Tip indicates that the stock's Relative Strength Index (RSI) suggests it may be in overbought territory. This could imply that the recent price increases might not be sustainable in the short term.

Another InvestingPro Tip highlights that A2Z is quickly burning through cash. This insight provides context for the company's decision to raise additional capital through the share offering, as mentioned in the article. The proceeds aimed at bolstering working capital align with this observation.

It's worth noting that InvestingPro offers 13 additional tips for A2Z, providing a more comprehensive analysis for investors interested in delving deeper into the company's prospects.

The financial data and tips from InvestingPro offer valuable context to the article, helping readers understand the company's current financial situation and market performance as it undertakes this new offering.

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