Street Calls of the Week
NORTON, Mass. - CPS Technologies Corp. (NASDAQ:CPSH) announced Tuesday the pricing of its underwritten public offering of 3 million shares of common stock at $3.00 per share, expected to generate approximately $9 million in gross proceeds before deducting underwriting costs and offering expenses. The offering price represents a discount to the current market value, with InvestingPro data showing the stock has delivered an impressive 144% return over the past year.
The company plans to use the net proceeds for general corporate purposes, including working capital, capital expenditures, debt repayment or refinancing, and other investments. According to InvestingPro data, CPS Technologies maintains a strong liquidity position with a current ratio of 3.34 and holds more cash than debt on its balance sheet. Roth Capital Partners is serving as the sole book-running manager for the offering.
CPS has granted the underwriter a 45-day option to purchase up to an additional 450,000 shares at the public offering price, less underwriting discounts and commissions. The offering is expected to close Wednesday, subject to customary closing conditions.
The offering is being conducted pursuant to a shelf registration statement on Form S-3 filed with the Securities and Exchange Commission on September 20, 2024, and declared effective on October 17, 2024.
CPS Technologies specializes in high-performance material solutions for various applications including electric trains, wind turbines, electric vehicles, Navy ships, and 5G infrastructure. The company’s products include hermetic packages for aerospace and satellite applications and lightweight armor products.
The announcement was made in a company press release statement.
In other recent news, CPS Technologies Corp. announced plans for an underwritten public offering of its common stock. The company intends to grant underwriters a 45-day option to purchase up to an additional 15% of the offered shares. Roth Capital Partners is acting as the sole book-running manager for this offering. Additionally, CPS Technologies secured a $125,000 Phase I Small Business Innovation Research contract from the U.S. Department of Energy’s Office of Nuclear Energy. This contract will fund research into high-performance impact limiters for transporting spent nuclear fuel and high-level radioactive waste, with the project running until April 2026.
In another development, CPS Technologies was awarded a $1.15 million Phase II Small Business Technology Transfer contract by the U.S. Army Combat Capabilities Development Command. This contract supports the development of a controlled fragmentation tungsten warhead, initially focusing on a 40mm variant. The project builds on the successful completion of an earlier Phase I program. These recent developments highlight CPS Technologies’ ongoing involvement in federally funded projects.
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