Focus Universal enters at-the-market sales agreement for up to $3.5 million in stock

Focus Universal Inc. (NASDAQ:FCUV) announced it has entered into an at-the-market issuance sales agreement with Ladenburg Thalmann & Co. Inc., according to a statement issued in a recent SEC filing.

Under the agreement, disclosed Monday, Focus Universal may sell shares of its common stock with an aggregate offering price of up to $3,547,506 through Ladenburg Thalmann acting as sales agent. The sales will be made from time to time in transactions deemed to be "at the market offerings" as defined by SEC regulations. This comes as the stock has experienced significant volatility, with a ~13% decline over the past week and trading well below its 52-week high of $10.90. Get deeper insights into Focus Universal’s financial health and 10+ additional ProTips with InvestingPro.

The offering will be conducted under the company’s shelf registration statement on Form S-3, which was declared effective by the SEC on January 8, 2025. A prospectus supplement relating to the sale of up to $3,547,506 of common stock in the at-the-market offering was filed with the SEC on Monday.

Ladenburg Thalmann will use its reasonable best efforts to sell the shares based on instructions from Focus Universal and in accordance with applicable laws and regulations. The agent may sell shares by methods permitted under the agreement, including negotiated transactions with the company’s prior written consent. Either party may suspend the offering at any time upon notice.

Focus Universal has agreed to pay Ladenburg Thalmann a commission equal to 3.0% of the aggregate gross proceeds from the sale of shares under the agreement. The company will also reimburse certain specified expenses, including counsel fees, and provide customary indemnification and contribution rights to the agent.

The legal opinion related to the issuance and sale of the shares has been provided by Corporate Securities Legal LLP, as referenced in the filing.

This information is based on a press release statement included in the company’s Form 8-K filing with the Securities and Exchange Commission.

In other recent news, Focus Universal Inc . has initiated mold tooling for its Universal Smart IoT platform. The company signed a contract with Shenzhen Donghui Precision Mold Manufacturing Co., Ltd. to begin the mold tooling design process. This development is aimed at simplifying IoT development by offering a pre-built foundation for devices, which could help in reducing overall development costs. The Universal Smart IoT platform is designed to allow various IoT devices to share most of their hardware and software components. This strategic move is part of Focus Universal’s efforts to enhance its offerings in the IoT sector.

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