IRVINE, Calif. - Mobix Labs Inc. (NASDAQ: MOBX), a company specializing in advanced connectivity solutions, has finalized agreements for a private placement offering, which is expected to close on July 24, 2024. The offering includes the sale of approximately 2.88 million shares of Class A common stock and warrants, with anticipated gross proceeds of around $4 million.
The securities, which are being sold at a price of $1.39 per share and accompanying warrants, are offered under Nasdaq's at-the-market rules. The series A and short-term series B warrants, both exercisable at $1.39 per share, will become active following stockholder approval. Series A warrants will be valid for five years post-approval, while series B warrants will expire after twelve months.
H.C. Wainwright & Co. is serving as the exclusive placement agent for the transaction. Mobix Labs aims to utilize the net proceeds for working capital, potential acquisitions, and associated operational expenses.
The securities are being offered privately under Section 4(a)(2) of the Securities Act of 1933, as amended, and/or Regulation D. These securities, along with the shares of common stock underlying the warrants, have not been registered under the Securities Act or state securities laws, thus restricting their sale in the U.S. except under a registration statement or an applicable exemption. Mobix Labs has committed to filing a resale registration statement for the securities.
Mobix Labs, based in Irvine, California, provides a range of wireless and wired connectivity technologies, including those utilized in aerospace, defense, 5G, and medical markets. The company's product lineup features mmWave radar and imaging, EMI solutions for secure GPS systems, optical cables for high-speed interconnects, and 5G wireless solutions.
Mobix Labs anticipates a 70% sequential revenue growth for the current quarter, surpassing $2 million. This increase is attributed to the successful acquisition of RaGE Systems, which has significantly contributed to the company's revenue stream. The acquisition of RaGE Systems, known for its radio frequency design and manufacturing services, is expected to enhance Mobix Labs' product development and innovation, as well as expand its customer base and market reach.
Furthermore, Mobix Labs has released the MBX3110 SP10T, a high-power radio frequency (RF) switch designed for the land mobile radio (LMR) market. The company expects the switch to offer superior performance for LMR applications, with potential uses also extending to defense systems and advanced wireless infrastructure. These developments highlight the ongoing strategic initiatives and product releases of Mobix Labs.
InvestingPro Insights
As Mobix Labs Inc. (NASDAQ: MOBX) navigates through its private placement offering, investors are keeping a close eye on the company's financial health and market performance. According to InvestingPro data, Mobix Labs currently holds a market capitalization of $37.25 million, with a notably high Price / Book ratio of 8.97 as of the last twelve months leading up to Q2 2024. This ratio indicates that the market values the company substantially more than its net asset value, which can suggest investor confidence or an overvalued stock depending on other factors.
InvestingPro Tips for Mobix Labs highlight that the stock price has experienced a significant downturn, plummeting by approximately 88.29% over the last year. This decline in stock value could be a point of concern for potential investors, especially when coupled with the fact that Mobix Labs is not profitable over the last twelve months and is quickly burning through cash. Additionally, the company's short-term obligations exceed its liquid assets, signaling potential liquidity risks that investors might want to consider.
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