MIAMI - SKYX Platforms Corp. (NASDAQ: SKYX), a technology company specializing in smart platform technologies for homes and buildings, announced it has secured an $11 million equity preferred stock investment without warrants, at a valuation of $2.00 per share of common stock. The investment was led by a global developer and owner of the Marriott Hotel chain, which operates over 60 hotels.
Key insiders at SKYX have also shown confidence in the company's prospects through substantial personal investments. President Steve Schmidt invested $500,000, while Co-CEOs Lenny Sokolow and John Campi each invested $250,000 in the equity round. This insider buying aligns with the company's projection of achieving a cash flow positive status by 2025.
SKYX reported sales of $58 million for 2023 and a record $21.4 million in sales for the second quarter of 2024. The company's total addressable market in the U.S. is estimated at $500 billion, with over 4.2 billion ceiling applications. Revenue streams are expected to come from various segments including product sales, royalties, licensing, and the sale of global country rights.
The company has recently entered into several strategic collaborations. These include a partnership with Home Depot (NYSE:HD), where SKYX products are now available in 100 stores and on Home Depot's website. A five-year global licensing agreement with General Electric (NYSE:GE) / GE Licensing aims to create a global ceiling standard using SKYX's smart technologies. Other collaborations with leading lighting distributors and manufacturers, such as Ruee Appliances, Kichler, Quoizel, and EGLO, are intended to enhance sales in the U.S., China, European markets, and online and builder segments.
SKYX's innovative smart home technology has garnered 7 CES Awards, and its safety applications have been incorporated into 10 segments of the National Electrical Code (NEC) Book. The company has filed for mandatory safety standardization for its ceiling outlet receptacle.
The leadership team at SKYX includes former executives from Fortune 100 companies such as Nielsen, Microsoft (NASDAQ:MSFT), Disney, GE, Home Depot, Office Depot (NASDAQ:ODP), and Chrysler, among others.
This announcement is based on a press release statement from SKYX Platforms Corp. and contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those projected in these statements.
In other recent news, SKYX Platforms Corp. has secured an $11 million investment led by Lance Shaner of Shaner Hotel Group, aimed at supporting the company's growth objectives. The company also announced the designation of its newly authorized convertible Series A Preferred Stock and Series A-1 Preferred Stock, which may impact its capital structure. In financial news, SKYX reported a significant increase in second-quarter sales, reaching $21.4 million, up from $15 million in the same period last year. The company also reduced its adjusted EBITDA loss to $2.1 million and net cash loss to $2.7 million.
SKYX secured a $3.5 million revolving line of credit through its subsidiary Belami, Inc., with Farmers & Merchants Bank of Central California. However, the company is currently facing potential delisting from the Nasdaq due to non-compliance with the exchange's minimum bid price requirement, but has been granted a 180-day grace period to regain compliance.
Analysts from Roth/MKM have initiated coverage on SKYX, assigning a Buy rating based on the potential of the company's SkyOutlet system. The company has also announced strategic collaborations with industry giants such as Home Depot and GE Licensing. These recent developments reflect SKYX's strategic decision to increase its credit facility, demonstrating its confidence in its financial stability and future prospects.
InvestingPro Insights
SKYX Platforms Corp. (NASDAQ: SKYX) has recently secured a significant equity investment, demonstrating investor confidence in its smart home technology. This development aligns with several key metrics and insights from InvestingPro.
According to InvestingPro data, SKYX has shown impressive revenue growth, with a 461% increase in the last twelve months as of Q2 2024. This substantial growth supports the company's reported sales figures and its expanding market presence through partnerships with major retailers and manufacturers.
However, investors should note that SKYX is currently operating at a loss, with an adjusted operating income of -$33.46 million in the last twelve months. This aligns with an InvestingPro Tip indicating that the company is "quickly burning through cash." The recent $11 million equity investment could provide crucial funding as SKYX works towards its goal of becoming cash flow positive by 2025.
Despite these financial challenges, the market seems optimistic about SKYX's potential. The stock has shown a strong return of 45.17% over the last three months, and 35.37% in just the past week. This recent performance is reflected in another InvestingPro Tip, which notes a "significant return over the last week."
For investors considering SKYX, it's worth noting that analysts anticipate sales growth in the current year, as highlighted by an InvestingPro Tip. This expectation aligns with the company's expanding partnerships and growing product presence in major retail chains.
InvestingPro offers 11 additional tips for SKYX, providing a more comprehensive analysis for interested investors. These insights can help in understanding the company's financial health, market position, and potential risks and opportunities.
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