ToughBuilt Industries Issues Shareholder Letter
July 22 2021 - 4:52PM
ToughBuilt Industries, Inc.
(“ToughBuilt” or the “Company”) (NASDAQ: TBLT; TBLTW), today issued
the following letter to shareholders:
Dear Fellow ToughBuilt Shareholders:
Since ToughBuilt Industries’ initial public
offering (IPO) in 2018, the Company has experienced significant
growth fueled by the rapid expansion of our customer base and
product offerings around the world. Thanks to our team’s hard work
and dedication, which continued unabated through the global
COVID-19 pandemic, we have successfully secured some of the world’s
largest retailers as ToughBuilt customers, established a global
manufacturing and distribution network and built an exciting
pipeline of next-generation solutions. As a result of our large
retailer base and constant innovation, end users - professional and
serious DIY builders - have come to rely on ToughBuilt tools and
gear to deliver the industry’s most advanced designs and
technology, grounded in functionality, durability and versatility.
The foundation of our business is based on our ability to deliver
true innovation in an industry that tends to measure its success by
incremental improvements. Our goal is to usher in a new generation
of technology-enabled solutions that will give end users
never-before-seen versatility, speed and reliability.
CAPITAL MARKETS
In February and March 2021, we raised
approximately $22.8 million through our at-the-market (ATM)
program. On July 14, 2021, we closed on a $40 million direct
registered offering to take advantage of favorable market
conditions and to remain operationally competitive through a
difficult supply chain period. The direct registered offering
included warrants to purchase up to approximately 23 million shares
of common stock. We intend to use the net proceeds from the
offering for working capital purposes.
OUTLOOK
We remain extremely optimistic about the future
for ToughBuilt. Over the past few years, we have laid the
groundwork for our innovative solutions to come to life and scale
around the globe. To sustain our growth and momentum, and to
maximize the value from each of our new product releases, we have
adopted several operational pillars believed to be crucial to our
success:
- Earn the trust of our
retailer partners. The fastest way for our products to get
into the hands of users is to leverage the vast distribution
networks of our large customers around the world, which currently
spans over 10,000 stores globally. To maintain these strong
relationships, we have to consistently meet their demands and
continue to collaborate to bring differentiated products and
solutions to their shelves.
- Continuous
innovation. In order to capitalize on our strong
partnerships, we need to continuously innovate and introduce
exciting new products. As we expand our relationships into new
regions, and ultimately gain additional shelf space, each new
product release will become increasingly more impactful.
- Increase our
capabilities. We have grown fast and continue to grow. To
support our growth, we will continue to add talented designers and
engineers, and expand our manufacturing and distribution
network.
ToughBuilt plans to introduce three to four new
product lines before the end of fiscal 2021, each of which will
incorporate ToughBuilt qualities of durability, functionality and
versatility. Furthermore, we intend to capitalize on the tremendous
traction we’ve gained in Europe and Latin America, with the
expectation that we can gain additional market share in 2021 and
beyond by establishing new relationships with large home
improvement retailers in these geographies. We are confident there
is a significant opportunity to disrupt international markets,
while continuing to strengthen our brand in the US and Canada.
Beyond 2021, our goal is to deliver next
generation technology-enabled equipment and gear for professional
and DIY builders. Our pipeline of products in the coming years is
expected to leverage technology that saves builders time and money
throughout each step of a project. Customers will be able to count
on the same level of durability and functionality synonymous with
the ToughBuilt brand, as they hold the future of home improvement
in their fingertips. In addition to the advances in our pipeline of
cutting-edge products, we expect to continue increasing our brand
awareness and network in order to successfully roll out our
disruptive technology.
Although we are excited to start delivering
technology-enabled products to our customers, we want to establish
a strong foundation in the industry to bring our vision to light in
a significant way. A strong foundation to us means a widespread
user base that relies on ToughBuilt products to support a variety
of applications, a vast network of distribution and buy-in of our
design ideas from retailers around the globe. Our goal is to spend
the remainder of 2021 strengthening our foundation and to introduce
technology-enabled tools in the coming years, powered by ToughBuilt
mobile applications. As we establish our suite of
technology-enabled products, we plan to introduce complementary
technology and gear that increase the capabilities of our
users.
We’ve entered the second half of 2021 with
exciting growth and opportunities ahead. I look forward to your
continued support on this journey!
Very truly yours,
Michael PanosianMichael@toughbuilt.comCEO and Chairman of the
Board
ToughBuilt Industries (NASDAQ:TBLT)
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