CUI Global Closes Over Allotment Funding for Another $1.5 Million
CUI Global, Inc. announced that the company has successfully closed the "Over Allotment Provision" in its Underwriting Agreement, bringing another $1,500,000 to the company. The Over Allotment was filled with the assistance of the company’s US Investment Banker, Merriman Capital, Inc.
Such an Over Allotment or "Green Shoe" provision is contained in an underwriting agreement and gives the underwriter the right to sell investors more shares than originally planned by the issuer. This is most commonly done if the demand for a security issue proves higher than expected. It is legally referred to as an over-allotment option.
The proceeds of this over-allotment option, much like those raised in the initial offering, will be used by the company for working capital and to rapidly bring its new Vergence™, Novum®, and Solus™ Technologies to the marketplace.
"The fact that we were able to attract even more funding to the company and fully fund and close the Green Shoe Provision is yet more evidence of the market’s acceptance of our continuing strategy to acquire leading edge technologies and bring them to market using our platform capabilities," explained CUI Global’s president and CEO, William Clough.
"These funds will enable us to accelerate the development of our Novum and Solus brands by, among other things, acquiring more engineering support, while assisting us in gaining more rapid market penetration of our Vergence Gas Metering Technology by increasing its worldwide exposure," continued Clough.
"We continue to focus all of our efforts on increasing revenues, eliminating or reducing costs, and enhancing shareholder value in order to reward the confidence placed in us by our shareholders and new investors," Clough concluded.
