Gold prices just lower; monthly gains on track
MONTREAL - Vision Marine Technologies Inc. (NASDAQ:VMAR), a leader in electric marine propulsion, has secured approximately $5.8 million through a private placement of securities to accredited and institutional investors, the company announced on Monday. The funding comes at a crucial time for VMAR, which has seen a 36% surge in stock price over the past week, though InvestingPro data shows the company has been quickly burning through cash with negative free cash flow of $9 million in the last twelve months. The transaction includes common shares and warrants, with the closing expected on January 14, 2025, subject to standard conditions.
The company will issue 4,626,400 common shares or pre-funded warrants in their stead, alongside common warrants to purchase an additional 2,313,200 common shares. Pre-funded warrants will allow holders to acquire a common share at $0.001 each, while common warrants are set at an exercise price of $1.50 per share and are immediately exercisable for five and a half years post-closing.
ThinkEquity is the exclusive placement agent for the offering, which has not been registered under the Securities Act of 1933 or state securities laws. Consequently, the securities may not be offered or sold in the U.S. without registration with the SEC or an applicable exemption from such requirements. Vision Marine has committed to filing a registration statement with the SEC for the resale of the common shares and warrants issued in the private placement.
The proceeds from the offering are earmarked for working capital and general corporate purposes. This funding round is a strategic move for Vision Marine as it continues to innovate in the electric recreational boating sector with its E-Motion™ outboard powertrain system, which integrates advanced battery technology, high-efficiency motors, and proprietary software. According to InvestingPro analysis, the company maintains a current ratio of 1.5, indicating sufficient liquid assets to meet short-term obligations, though its overall financial health score remains weak. Get access to 16 additional ProTips and comprehensive financial metrics with InvestingPro.
The press release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ from predicted outcomes. Vision Marine's Annual Report and periodic SEC filings detail these risks. The company does not assume any obligation to update forward-looking statements in light of new information or future events. With a gross profit margin of 39.5% but significant operating losses, InvestingPro analysis indicates the company's current market price is near its Fair Value, despite the recent volatility.
This news is based on a press release statement from Vision Marine Technologies.
In other recent news, Massimo Group has announced a partnership with Vision Marine Technologies Inc to develop a 30-foot electric pontoon platform. This collaboration aims to meet the increasing demand for zero-emission solutions in the marine industry, potentially benefiting from various government grants and incentives. The partnership will integrate Vision Marine's E-Motion™ 180E Powertrain System with Massimo Marine's pontoon boats, a move that is expected to transform the marine industry.
Other recent developments include Vision Marine's completion of a public offering, raising $3.4 million to primarily support working capital and fund patent applications. The company also announced a 15-for-1 reverse stock split, approved by its Board of Directors, to meet Nasdaq's minimum bid price requirement.
In addition, Vision Marine has formed a strategic partnership with Florida-based JetRide Holding, LLC, to expand its reach in the electric boat rental market. The company continues to expand its intellectual property portfolio, filing several patents integral to its E-Motion™ Marine Powertrain Technology. These developments underscore Vision Marine's commitment to sustainability in the electric boating industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.