SAN FRANCISCO – Bolt Projects Holdings, Inc. (NASDAQ:BSLK), a company specialized in industrial organic chemicals, has entered into a material definitive agreement on Sunday, according to a recent SEC filing. The company has agreed to a private placement of equity securities, securing approximately $360,000 in funding through the sale of common stock to a group of investors that includes high-level executives and board members.
The securities purchase agreement, dated November 25, 2024, involves the sale of 1,058,826 shares of common stock at a price of $0.34 per share, which was the closing price on the NASDAQ on the day the agreement was made. The investors, or "Purchasers," comprise Daniel Widmaier, Bolt's CEO and board member; David Breslauer, CTO and board member; Randy Befumo, Interim CFO; Jery Finard, board member; and an entity affiliated with Jerry Fiddler, another board member. The transaction is expected to close on December 2, 2024.
This private placement is exempt from registration under the Securities Act of 1933, as amended, according to Section 4(a)(2), which pertains to transactions by an issuer not involving a public offering. As such, the shares issued in this placement may not be reoffered or resold without registration with the SEC or an applicable exemption from such requirements.
In other recent news, Bolt Projects Holdings has been grappling with potential delisting from Nasdaq due to non-compliance with the minimum bid price requirement. The company has until May 2025 to regain compliance by ensuring its common stock reaches a closing bid price of at least $1.00 for ten consecutive business days. While the company is considering options to resolve the issue, there is no guarantee of compliance within the initial period or any extension.
In addition to this, Bolt Projects Holdings has undergone significant corporate developments. The company recently completed a major business combination with Old Bolt, resulting in a new issuance of shares and a PIPE Investment issuing over 464,000 new shares at $10.00 per share. This also included the acquisition of assets, unregistered sales of equity securities, and changes in control and corporate governance.
The firm welcomed a new team of directors and executive officers as part of these changes, with notable names such as Daniel Widmaier as CEO and Randy Befumo as Interim CFO. Furthermore, Bolt Projects Holdings reported a change in its independent registered public accounting firm, replacing WithumSmith+Brown, PC with Elliott Davis, PLLC. These are the recent developments following the completion of the business combination.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Bolt Projects Holdings, Inc.'s (NASDAQ:BSLK) financial situation. The company's market capitalization stands at a modest $10.99 million, reflecting its current position in the industrial organic chemicals sector.
Two key InvestingPro Tips are particularly relevant to the recent private placement agreement. First, the company is "quickly burning through cash," which aligns with the need for the $360,000 funding secured through the sale of common stock. Second, BSLK has seen a "significant return over the last week," with a 20.57% price total return in the past week. This recent uptick may have influenced the timing of the private placement.
Despite these developments, it's worth noting that BSLK's stock price has fallen significantly over various timeframes, including a 96.79% decline over the past year. The company's revenue for the last twelve months as of Q3 2024 was $1.49 million, with a concerning revenue growth of -30.62% over the same period.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for BSLK, providing a deeper understanding of the company's financial health and market position.
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