CUI Global, Inc. announced that it has closed the Over Allotment provision in its underwriting agreement, filed with assistance from Merriman Capital, CUI's U.S. investment banker. The closing of this provision gained CUI $1.5 million, and is earmarked by the company to fund new projects coming to market.
CUI is focused on acquiring and developing new technologies and companies in industries such as energy, telcon, and electronic components. The company has delved into producing components for technologies such as power, interconnect, motion control, and sound.
The Over Allotment provision, or Green Shoe provision, gives the underwriter of the agreement the ability to sell more shares to investors than was originally planned by the issuer, and is done if the demand for a security issue proves higher than expected. The proceeds from CUI's Over Allotment will go towards bringing the company's new Vergence, Novum, and Solus technologies to market more quickly.
William Clough, CUI Global's president and CEO, said, "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. 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."
"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.
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