ToughBuilt Industries, Inc. (TBLT) stock prices were down by a marginal 0.54% as of the market closing on July 14th, 2021, bringing the price per share down to USD$0.6681 at the end of the trading day. Subsequent premarket fluctuations have seen the stock rise by 3.04%, bringing it up to USD$0.6884.
Registered Direct Offering
July 11th, 2021 saw the company announce that it had entered into a securities purchase agreement with various institutional investors. As per the agreement, the company would issue and sell of 46,029,920 shares of common stock, as well as warrants to purchase up to 23,014,960 shares. Each share and the accompanying warrant will be priced at USD$0.869 in the direct offering.
Details of the Offering
The warrants will be able to be exercised immediately, with an exercise price of USD$0.81 per share of common stock and expiry date of five years from the date of issuance. The company anticipated the generation of almost USD$40 million before the deduction of expenses related to the offering, with plans to allocate the net proceeds from the offering towards working capital purposes.
Success of Amazon Sales
July 8th, 2021 saw the company announce that gross sales of the company through Amazon.com were up by 118% in the first half of 2021, as compared to the first half of the prior year. H1 2021 reported almost USD$5.48 million, up from the USD$2.51 million in H1 2020. The significant momentum generated by sales through Amazon in the first half of 2021 is indicative of the company’s increasing strength across its product offerings, catering to professional and DIY builders across the North American continent.
Expanding Scope of TBLT
As the company continues to expand its online presence into Canada and Mexico while US sales are on the rise, the company is facilitating further development. TBLT is strategizing concurrent expansion of their geographic commercial footprint, facilitated by the launch of new SKUs that will see the company capitalize on the strong demand for their innovative designs and features.
Future Outlook for TBLT
Armed with the added capital generated from their public offering and the success of their Amazon sales, TBLT is poised to capitalize on the opportunities presented to them. The company is keen to facilitate further organic growth as it continues to expand its market footprint, thus driving up increases in shareholder value.