CitroTech Prices 2.24 Million Shares at $2.50 in Public Offering

CitroTech priced a 2.24 million-share public offering at $2.50 each, targeting $5.6 million in gross proceeds as its latest financial statements showed a $10.1 million six-month net loss.

The expected proceeds are before underwriting discounts, commissions and estimated expenses. The company plans to use the net proceeds for working capital and general corporate purposes. Univest Securities LLC is the sole book-running manager for the offering.

The deal gives the underwriter 45 days to buy as many as 336,000 more shares for $2.50 each, minus underwriting discounts and commissions. The sale is expected to close on or about Oct. 22, subject to customary conditions.

CitroTech had $2,519,302 in cash as of June 30. For the six months ended that day, it used $3,842,728 in operating cash and recorded a net loss of $10,113,118.

The company’s financial statements said available cash was insufficient to fund commercial-scale production and related working-capital needs over the next 12 months. They also identified substantial doubt about CitroTech’s ability to continue as a going concern for a year after the statements were issued.

A preliminary registration statement filed Sept. 28 described a potential offering of up to $7 million at an assumed price of $4.27 per share, based on the Sept. 24 closing price. The Securities and Exchange Commission declared the registration statement effective Oct. 20. The final offering terms set the share price at $2.50.