Lake Forest, California, July 11, 2021 (GLOBE NEWSWIRE) – ToughBuilt Industries, Inc. (“ToughBuilt” or the “Company”) (NASDAQ: TBLT; TBLTW), announced today that it has entered into securities purchase agreements with certain institutional investors for the issuance and sale of 46,029,920 common shares and warrants to purchase up to 23,014,960 common shares, at a purchase price of $ 0.869 per share and the associated warrant in a direct offer recorded at market price under Nasdaq rules. The warrants will be immediately exercisable at an exercise price of $ 0.81 per common share and will expire five years after the date of issue. The offer is expected to close on or around July 14, 2021, subject to the satisfaction of customary closing conditions.
HC Wainwright & Co. is acting as the exclusive placement agent for the offering.
Gross proceeds to the Company are expected to be approximately $ 40 million, before the deduction of placement agent fees and other expenses related to the offering. ToughBuilt currently intends to use the net proceeds of the Offering for working capital purposes.
The securities described above are offered pursuant to a “shelf” registration statement on Form S-3 (registration number 333-252630) (the “registration statement”), which has been declared effective by the Securities and Exchange Commission (the “SEC”) on February 8, 2021. A prospectus supplement to the prospectus contained in the registration statement relating to the offering will be filed with the SEC. Electronic copies of the Prospectus Supplement and the accompanying prospectus relating to the Offer may be obtained, where available, from HC Wainwright & Co., LLC, 430 Park Avenue 3rd Floor, New York, New York 10022 , or by calling (212) 856 -5711 or by e-mail placements@hcwco.com or on the SEC website at http://www.sec.gov.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, and there will be no sale of such securities in any jurisdiction in which such an offer, solicitation or sale would be illegal prior to ‘registration or qualification under the securities laws of such jurisdiction.
About ToughBuilt Industries, Inc.
ToughBuilt is a leading product designer, manufacturer and distributor with a focus on innovative products. Currently focused on tools and other accessories for the professional construction and DIY industries. We market and distribute various lines of home improvement and construction products for the DIY and professional markets under the TOUGHBUILT brand, within the global multi-billion dollar per year tool market industry. All of our products are designed by our in-house design team. Since launching product sales in 2013, we have experienced significant annual sales growth. Our current product line consists of three main categories, with several additional categories in various stages of development, including soft items and knee pads and sawhorses and work products. Our mission is to provide the building and home improvement communities with innovative, high-quality products, derived in part from enlightened creativity for our end users, while improving performance, well-being and brand loyalty. Additional information about the Company is available at: https://www.toughbuilt.com/.
Forward-looking statements:
This press release contains “forward-looking statements”. Such statements may be preceded by the words “intention”, “may”, “will”, “plans”, “expects”, “plans”, “projects”, “predicts”, “estimates”, “aims”. , “Esteem”, “hopes”, “potential” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the control of the Company, and cannot be predicted or quantified and, by Therefore, actual results may differ materially from those expressed or implied by such forward-looking statements, and include, without limitation, the completion of the recorded direct offering; the satisfaction of customary closing conditions associated with the registered direct placement and the intended use of the net proceeds of the registered direct placement. These risks and uncertainties include, without limitation, the risks and uncertainties associated with (i) market acceptance of our existing and new products, (ii) delays in introducing products into key markets, (iii) the inability to obtain regulatory approvals for the ability to sell our products in certain markets, (iv) intense competition in the industry from much larger multinational companies, (v) liability claims product failure, (vi) product malfunctions, (vii) limited manufacturing capabilities and use of contractors for support, (viii) efforts to successfully obtain and maintain property protection intellectual property covering our products, which may not be successful, (ix) our reliance on single suppliers for certain product components, (x) the fact that we will need to raise additional capital in order to To meet our business needs in the future and that such raising of capital may be costly, dilutive or difficult to obtain, (xi) the fact that we operate in several foreign jurisdictions, exposing us to fluctuations in interest rates. changes, logistics and communications challenges, burdens and costs of compliance with foreign laws and political and economic instability in each jurisdiction, (x) market conditions and others. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements are set out in the documents filed by the Company with the Securities and Exchange Commission (SEC), including the Company’s annual report on the form 10 K and its quarterly reports on Form 10 Q. Investors and security holders are urged to read these documents free of charge on the SEC website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise, except as required by law.
Investor Relations Contact:
KCSA strategic communication
David Hanover
ToughBuilt@KCSA.com
