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VIENNA, Va. - Cybersecurity and software services firm Castellum, Inc. (NYSE-American: CTM), currently valued at approximately $118 million, has priced its public offering of 4,166,667 units at $1.20 per unit, according to a company press release issued Thursday. InvestingPro data shows the company maintains a healthy liquidity position with a current ratio of 2.93x.
Each unit consists of one common stock share and one warrant to purchase an additional share. The warrants will be immediately exercisable at $1.22 per share and will expire 60 days after issuance. The shares and warrants will be issued separately.
The offering is expected to generate approximately $5 million in gross proceeds before deducting placement agent fees and offering expenses. Castellum plans to use the net proceeds for working capital and general corporate purposes.
Maxim Group LLC is serving as the sole placement agent for the offering on a reasonable best-efforts basis. The transaction is expected to close on or about Friday, subject to customary closing conditions.
The offering is being conducted under a shelf registration statement on Form S-3 that was previously filed with the SEC and became effective on January 24, 2025.
Castellum focuses on providing cybersecurity, electronic warfare, and software engineering services to the federal government. The company’s announcement was based on information contained in a press release statement.
In other recent news, Castellum, Inc. announced several significant developments. The company held its annual stockholder meeting, where six directors were elected, and key amendments to stock incentive and employee stock purchase plans were approved. Additionally, Castellum has successfully reduced its debt by $2 million and extended the maturity date of a note payable until December 2027, as part of its strategy to enhance financial performance. The company also reminded investors of the upcoming expiration of 3,355,000 warrants, providing an opportunity to convert these into shares before mid-May.
In executive updates, Castellum extended the contracts of key officers, including CEO Glen R. Ives, whose salary will increase, and implemented an at-will employment arrangement for CFO David T. Bell. Furthermore, Castellum’s subsidiary, Global Technology and Management Resources, Inc., achieved a Maturity Level 3 appraisal in the Capability Maturity Model Integration, which is expected to bolster the company’s competitive edge in government contracting. These developments reflect Castellum’s ongoing efforts to optimize financial health, secure major contracts, and strengthen its leadership team.
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