TransAct Technologies Inc, a supplier of slot machine printers, casino-player management software and food-safety management technology, said on Thursday it planned to raise just under US$11 million gross, via newly-issued shares of its common stock in an underwritten public offering.
It had mentioned on Wednesday a planned share offer, before announcing its volume and pricing.
TransAct reiterated on Thursday its Wednesday statement that it would use the net proceeds from the new-share offer for working capital, and other general corporate purposes, “which may include funding the further development of TransAct’s food service technology business and related sales, marketing and product development efforts, technology improvements and personnel costs in support of TransAct’s growth strategy”.
In early August, TransAct reported its food service technology sales in the second quarter rose 155.3 percent year-on-year and 11.9 percent sequentially, to nearly US$3.1 million, benefitting from demand for TransAct’s food-inventory monitoring and food-service tracking system known as Boha.
On Thursday the group confirmed the stock offer would involve 732,500 such shares at US$14.50 per share, a slight discount on the US$14.77 per unit price of the common stock as quoted on Nasdaq at the close of business that day.
TransAct said in its Thursday update said the proceeds were expected to be approximately US$10.6 million before deducting underwriting discounts, commissions and other expenses. The company has also granted the underwriters a 30-day option to purchase an additional 109,875 shares of common stock to cover overallotments in connection with the offering. The offering is expected to close on August 16, subject to customary closing conditions.
Roth Capital Partners LLC is acting as the sole book-running manager for the offering, and Craig-Hallum Capital Group LLC is acting as co-manager.
The announcement said a shelf-registration statement relating to the shares in the proposed offering had been filed with the United States’ Securities and Exchange Commission on August 17, 2020, and remains in effect.
(Updated Aug 13, 9.15am)
