VANCOUVER, BC - Siyata Mobile Inc. (NASDAQ:SYTA), a developer of Push-to-Talk over Cellular (PoC) devices, has announced the pricing of its public offering, which is expected to generate approximately $4 million. The offering includes common shares and pre-funded warrants, with each share priced at $1.70, and each pre-funded warrant priced one cent less.
The proceeds from this offering, which is anticipated to close on August 15, 2024, are intended for working capital and general corporate purposes. These include payments to a third-party marketing agency for advertising and promotional services. Spartan Capital Securities, LLC is the sole placement agent for the transaction.
This offering comes after Siyata Mobile’s registration statement, filed on August 2, 2024, was declared effective by the Securities and Exchange Commission (SEC) on August 13, 2024. Interested parties can obtain a copy of the final prospectus from Spartan Capital Securities upon its filing with the SEC.
Siyata Mobile focuses on the B2B market, offering rugged PoC handsets and accessories designed for instant communication across cellular networks. These devices are used by a variety of clients, including first responders, schools, and utility companies, to enhance communication and safety. The company also provides in-vehicle solutions and cellular booster systems to ensure connectivity in vehicles and areas with poor cellular reception.
The company's common shares and publicly traded warrants are listed on the NASDAQ under the tickers "SYTA" and "SYTAW," respectively.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described, and there will be no sale of these securities in jurisdictions where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
The information provided here is based on a press release statement from Siyata Mobile Inc.
In other recent news, Siyata Mobile Inc. has announced a series of significant developments. The company has decided to execute a 1-for-18 reverse stock split, a move aimed at complying with Nasdaq's minimum bid price requirement for continued listing. The company has also reported substantial progress in its operations, securing significant orders including a $1.2 million order from an international EMS service provider and new orders valued at over $4.5 million for its SD7 handsets and related accessories.
In addition to these developments, Siyata Mobile has received a new order from the City of Hawaiian Gardens, California, for its SD7 handsets and VK7 vehicle kits, marking a significant stride in penetrating the government sector. The company has also integrated Zello's push-to-talk app into its SD7 handsets, enhancing communication for first responders and enterprise workers, and unveiled an enhanced version of its SD7 Wired Palm Mic Pro, incorporating advanced AI noise cancellation technology.
Finally, Siyata Mobile has made a strategic investment in Canadian Towers & Fiber Optics Inc., a firm that constructs and manages telecom infrastructure in Mexico, and secured a US patent for its VK7 Vehicle Kit, a mobile conversion apparatus designed for docking cellular data devices. The company also priced a public offering of $4 million in common shares and/or pre-funded warrants to purchase common shares at $1.30 per share. These are the recent developments in the company's operations.
InvestingPro Insights
Siyata Mobile Inc. (NASDAQ:SYTA) has been navigating challenging market conditions, as reflected in some of the key metrics from InvestingPro. The company's market capitalization stands at a modest $0.22 million, indicating a relatively small valuation in the market. Despite a notable revenue growth of 17.94% over the last twelve months as of Q1 2024, the company's financial health is under scrutiny with an adjusted P/E ratio of -0.02, highlighting investor concerns over profitability.
InvestingPro Tips reveal that Siyata Mobile operates with a significant debt burden and is quickly burning through cash, which may be of concern to potential investors considering the upcoming public offering. The Price / Book ratio as of Q1 2024 is very low at 0.03, suggesting that the market values the company at close to the net value of its assets.
However, it is important to note that analysts do not anticipate the company will be profitable this year, and the stock has experienced a significant decline over various timeframes, including a 1-month price total return of -79.37% as of the date provided.
For investors looking for a deeper dive into Siyata Mobile's financials and future prospects, there are additional InvestingPro Tips available, which can provide further guidance on whether this offering aligns with their investment strategy. To explore these tips, interested parties can visit https://www.investing.com/pro/SYTA.
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