Byrna Technologies, Inc. (BYRN) stock prices were up 12.79% shortly after market trading commenced on July 16th, 2021, bringing the price per share up to USD$25.40 early on in the trading day.
Registered Direct Offering
July 16th, 2021 saw the company announce the pricing of its upsized underwritten public offering, wherein the company will sell 2.5 million common shares. Each share will be priced at USD$21.00, with total gross proceeds in the amount of roughly USD$52.5 million being generated, before the deduction of expenses related to the offering. This upsizing saw the company bump its shares up from the previously announced 2.25 million common shares.
Details of the Offering
Furthermore, the offering includes an option for underwriters to purchase up to an additional 375,000 common shares within 30-days of the offering, at the same price as the public offering. The company plans to allocate the capital generated in net proceeds from the offering towards working capital, as well as other general corporate purposes.
Revenue Reports
Revenues for the second quarter of fiscal 2021 were up to USD$13.4 million, a significant year-over-year improvement from the USD$1.2 million reported for the prior-year quarter. This increase in sales was largely driven by the strength of the company’s order growth for its flagship Byrna HD personal security device. This has been facilitated by favorable media attention, as well as an increase in quarterly production volumes.
Operating Expense Breakdown
Operating expenses were up to USD$5.5 million in the second quarter of 2021 from the USD$1.4 million in the prior-year period. This year-over-year difference was indicative of greater investment in corporate infrastructure needed for the support of the company’s growth, largely driven by the addition of key management positions over the previous year, including, but not limited to, CFO, CMRO, CSCO, and CPO. Further facilitating the difference was an increase in marketing expenses, as well as increases in legal and public company-related costs. These costs include expenses associated with a reverse stock split, wherein the conversion of the Series A preferred stock into common stock, as well as the up-listing of the company to the Nasdaq Capital Market.
Future Outlook for BYRN
Armed with the influx of the capital generated from the public offering, as well as the success of its financial reports for the most recent quarter, BYRN is poised to continue its trajectory of success. Current and potential investors are hopeful that management will be able to leverage the resources at its disposal to facilitate significant and sustained increases in shareholder value.
