ToughBuilt Industries, Inc. Announces Closing of $5 Million Registered Direct Offering
February 15 2022 - 6:02PM
ToughBuilt Industries, Inc. (“ToughBuilt” or the “Company”)
(NASDAQ: TBLT; TBLTW), today announced that it has closed its
previously announced registered direct offering with certain
institutional investors for the issuance and sale of an aggregate
of 2,500 shares of Series F Convertible Preferred Stock and 2,500
shares of Series G Convertible Preferred Stock for gross proceeds
of $5 million, before deducting placement agent fees and other
offering expenses. The shares of Series F Convertible Preferred
Stock have a stated value of $1,000 per share and are convertible
into an aggregate of 12,500,000 shares of common stock at a
conversion price of $0.20 per share. The shares of Series G
Convertible Preferred Stock have a stated value of $1,000 per share
and are convertible into an aggregate of 12,500,000 shares of
common stock at a conversion price of $0.20 per share.
H.C. Wainwright & Co. acted as the exclusive
placement agent for the offering.
ToughBuilt currently intends to use the net
proceeds from the offering for working capital purposes.
The Company also issued such investors
unregistered warrants to purchase up to an aggregate of 18,750,000
shares of our common stock, at an exercise price of $0.251 per
share, which are exercisable on the later of (i) the date of
shareholder approval to increase the authorized shares of common
stock or effect a reverse stock split of the common stock and (ii)
six months following the date of issuance, and will expire five
years from the initial exercise date.
The Series F and Series G Preferred Stock
described above and the underlying shares of Common Stock were
offered pursuant to a “shelf” registration statement on Form S-3
(Registration No. 333-252630) (the “Registration Statement”), which
was declared effective by the Securities and Exchange Commission
(the “SEC”) on February 8, 2021. The prospectus supplement to the
prospectus contained in the Registration Statement relating to the
offering was filed with the SEC. Electronic copies of the
prospectus supplement and the accompanying prospectus relating to
the offering may be obtained from H.C. Wainwright & Co., LLC,
430 Park Avenue 3rd Floor, New York, New York 10022, or by calling
(212) 856-5711 or by emailing placements@hcwco.com or at the SEC’s
website at http://www.sec.gov. About ToughBuilt
Industries, Inc.
ToughBuilt is an advanced product design,
manufacturer and distributor with emphasis on innovative products.
Currently focused on tools and other accessories for the
professional and do-it-yourself construction industries. We market
and distribute various home improvement and construction product
lines for both the do-it-yourself and professional markets under
the TOUGHBUILT brand name, within the global multibillion dollar
per year tool market industry. All of our products are designed by
our in-house design team. Since launching product sales in 2013, we
have experienced significant annual sales growth. Our current
product line includes three major categories, with several
additional categories in various stages of development, consisting
of Soft Goods & Kneepads and Sawhorses & Work Products. Our
mission is to provide products to the building and home improvement
communities that are innovative, of superior quality derived in
part from enlightened creativity for our end users while enhancing
performance, improving well-being and building high brand loyalty.
Additional information about the Company is available at:
https://www.toughbuilt.com/.
Forward Looking Statements
This press release contains “forward-looking
statements.” Such statements may be preceded by the words
“intends,” “may,” “will,” “plans,” “expects,” “anticipates,”
“projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,”
“potential” or similar words. Forward-looking statements are not
guarantees of future performance, are based on certain assumptions
and are subject to various known and unknown risks and
uncertainties, many of which are beyond the Company’s control, and
cannot be predicted or quantified and consequently, actual results
may differ materially from those expressed or implied by such
forward-looking statements, and include, without limitation, the
intended use of net proceeds from the registered direct offering.
Such risks and uncertainties include, without limitation, risks and
uncertainties associated with (i) market acceptance of our existing
and new products, (ii) delays in bringing products to key markets,
(iii) an inability to secure regulatory approvals for the ability
to sell our products in certain markets, (iv) intense competition
in the industry from much larger, multinational companies, (v)
product liability claims, (vi) product malfunctions, (vii) our
limited manufacturing capabilities and reliance on subcontractors
for assistance, (viii) our efforts to successfully obtain and
maintain intellectual property protection covering our products,
which may not be successful, (ix) our reliance on single suppliers
for certain product components, (x) the fact that we will need to
raise additional capital to meet our business requirements in the
future and that such capital raising may be costly, dilutive or
difficult to obtain, (xi) the fact that we conduct business in
multiple foreign jurisdictions, exposing us to foreign currency
exchange rate fluctuations, logistical and communications
challenges, burdens and costs of compliance with foreign laws and
political and economic instability in each jurisdiction, (xii)
market and other conditions. More detailed information about the
Company and the risk factors that may affect the realization of
forward looking statements is set forth in the Company’s filings
with the Securities and Exchange Commission (SEC), including the
Company’s Annual Report on Form 10 K and its Quarterly Reports on
Form 10 Q. Investors and security holders are urged to read these
documents free of charge on the SEC’s web site at
http://www.sec.gov. The Company assumes no obligation to publicly
update or revise its forward-looking statements as a result of new
information, future events or otherwise, except as required by
law.
Investor Relations Contact:
KCSA Strategic CommunicationsDavid
HanoverToughBuilt@KCSA.com
ToughBuilt Industries (NASDAQ:TBLT)
Historical Stock Chart
From Jun 2024 to Jul 2024
ToughBuilt Industries (NASDAQ:TBLT)
Historical Stock Chart
From Jul 2023 to Jul 2024