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FREMONT, Calif. - Actelis Networks, Inc. (NASDAQ:ASNS), a micro-cap technology company with a market capitalization of $5.35 million and trailing twelve-month revenue of $7.75 million, announced Thursday it has closed a previously announced private placement that raised approximately $1 million in gross proceeds before expenses. According to InvestingPro analysis, the company shows a weak financial health score of 1.26, indicating potential challenges ahead.
The offering, priced at-the-market under Nasdaq rules, consisted of 1,626,019 shares of common stock at $0.615 per share, along with Series A-3 warrants to purchase up to 1,626,019 additional shares and short-term Series A-4 warrants to purchase up to 3,252,038 shares. The stock has experienced significant volatility, with InvestingPro data showing a 65.85% decline over the past year and currently trading near its 52-week low of $0.53.
Both warrant series have an exercise price of $0.615 per share and will become exercisable upon shareholder approval. The Series A-3 warrants expire five years after shareholder approval, while the Series A-4 warrants expire after 18 months.
If all warrants are fully exercised on a cash basis, Actelis could receive approximately $3 million in additional gross proceeds, though the company noted there is no assurance the warrants will be exercised.
H.C. Wainwright & Co. served as the exclusive placement agent for the offering.
Actelis intends to use the net proceeds as working capital for general corporate purposes, according to the press release statement. This funding comes at a crucial time, as InvestingPro analysis reveals the company is quickly burning through cash, with negative free cash flow of $8.52 million in the last twelve months. Get access to 10+ additional ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
The securities were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933 and Regulation D, and have not been registered under the Act or applicable state securities laws. The company has agreed to file registration statements with the SEC covering the resale of the unregistered securities.
Actelis Networks provides cyber-hardened networking solutions for IoT applications across government, transportation, military, utility, rail, telecom, and campus networks. Despite reporting strong revenue growth of 72.95% in the last twelve months, the company faces profitability challenges with a negative EBITDA of $3.83 million.
In other recent news, Actelis Networks, Inc. has received an initial order from a major U.S. telecommunications carrier to deploy its GigaLine solutions for multi-dwelling unit (MDU) connectivity. This order marks the company’s first major deployment with a U.S. carrier, utilizing its GigaLine 800 and GigaLine 900 products designed to deliver high-speed connectivity without the need for new fiber installation. Actelis, in partnership with Netceed, sees this as a significant milestone in its MDU market strategy, with the potential for further expansion across the carrier’s service area. In addition, the company has appointed Jason Chasse as Director of Federal Sales to bolster its efforts in the federal and military markets. Actelis has also secured a new order to enhance railway infrastructure in Northern Ireland, focusing on modernizing and digitizing rail operations. Furthermore, the company has expanded its operations in Japan with an order from a top Japanese distributor to support the modernization of critical infrastructure. These developments underscore Actelis’ strategic growth in both the telecommunications and infrastructure sectors across various regions.
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