RANCHO CUCAMONGA, Calif. - iPower Inc. (NASDAQ: IPW), an online retailer and supplier specializing in consumer home, pet, and garden products, along with ecommerce services, has announced a registered direct offering and concurrent private placement aimed at raising approximately $5 million. The offering includes the sale of 2,083,334 shares of common stock, or equivalent, at $2.40 each, alongside warrants to purchase an equal number of shares, also at $2.40 per share.
The warrants, which will be exercisable immediately upon issuance, will have a five-year term from the initial exercise date. This transaction is expected to close tomorrow, subject to customary closing conditions. Roth Capital Partners is serving as the exclusive placement agent for the offering.
The proceeds from this offering are earmarked for the pursuit of growth strategies that may include mergers and acquisitions, as well as for general corporate purposes. The offering utilizes a shelf registration statement previously filed and declared effective by the Securities and Exchange Commission (SEC) on September 29, 2023.
The securities offered in the direct offering are available by prospectus only, while the warrants and underlying shares in the private placement have not been registered and are subject to restrictions on resale in the U.S. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities.
iPower is known for leveraging technology and data to provide a broad range of products and services. The company operates a network of warehouses across the U.S. and utilizes various online channels and business intelligence platforms to meet consumer demand.
This financial move is part of iPower's strategy to expand its operations and enhance its market presence, as outlined in the company's forward-looking statements. However, iPower has noted that these statements are subject to risks and uncertainties and that actual results may differ from expectations.
Investors interested in the offering can find more details on the SEC's website or by contacting Roth Capital Partners directly. This article is based on a press release statement from iPower Inc.
In other recent news, iPower Inc. has demonstrated a strong financial performance in its fiscal third quarter of 2024, returning to profitability. The home, pet, and garden product supplier reported a 15% year-over-year increase in total revenue, reaching $23.3 million.
Gross profit saw a significant rise of 41% to $10.9 million, with gross margins hitting a record of 47%. The company's net income for the quarter was $1 million, a vast improvement from a net loss of $1.5 million in the same quarter of the previous year.
iPower has also announced strategic partnerships to enhance its operations. The company has collaborated with Amazon (NASDAQ:AMZN) Logistics Services to improve its SuperSuite platform's delivery capabilities, aiming to offer better last-mile delivery options for its clients. This partnership is expected to provide competitive rates for delivery services, improving cost-efficiency for iPower's partners.
Furthermore, iPower has joined Temu US, a burgeoning ecommerce platform, as a new seller channel. This move is expected to provide additional sales avenues for iPower's SuperSuite clients and supply chain partners. The company began selling on Temu in April 2024 and has reported rapid growth on the platform. These recent developments are shaping iPower's operational and strategic business goals.
InvestingPro Insights
As iPower Inc. (NASDAQ: IPW) embarks on its capital-raising journey with the latest offering, current and prospective investors may find the following metrics from InvestingPro insightful. The company's market capitalization stands at a modest $98.4 million, reflecting its position in the industry. Despite a challenging market environment, iPower has demonstrated a notable revenue growth of 2.73% in the last twelve months as of Q3 2024, with a more impressive quarterly surge of 15.24% in Q3 2024. This suggests a positive trajectory for the company's sales performance.
InvestingPro Tips highlight that iPower's Price to Earnings (P/E) Ratio for the same period is -18.27, with a slight adjustment to -19.12 when looking at the last twelve months. While negative P/E ratios can raise questions about profitability, they are not uncommon in growth-focused companies investing heavily back into their operations. The Price to Book (P/B) ratio of 5.18 indicates that the market values the company at over five times its book value, which could be a testament to investors' expectations of future growth.
For those considering a deeper dive into iPower's financials, InvestingPro offers additional insights. With PRONEWS24, readers can receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to an expanded array of tips. Currently, there are 20 additional InvestingPro Tips available for iPower, which could further inform investment decisions and provide a clearer picture of the company's financial health and growth potential.
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