TransAct to offer new shares to cover corporate costs

Oct 14, 2020 Newsdesk Latest News, Top of the deck, World  

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TransAct Technologies Inc, a supplier of casino slot machine printers and food safety monitoring equipment for commercial catering, stated in a Tuesday filing in the United States that it planned to offer newly-issued shares of its common stock in an underwritten public offering.

Neither the filed prospectus, nor an accompanying press release, stated the size of the offer, nor the date of the offer or its prospective completion date.

But the press release said the firm “also expects” to grant the underwriters of the offering a 30-day option to purchase up to an additional 15 percent of the shares of common stock in the underwritten public offering, on the same terms and conditions as other investors.

The firm said in its prospectus that its authorised capital amount of common stock consisted of 20,000,000 shares, at par value of US$.01 per share.

The sole book-running manager is Roth Capital LLC.

TransAct said it would use the proceeds of any such offer for “general corporate purposes, which may include capital expenditures, investments, funding potential acquisitions, repayment of debt and general working capital”.

Prior to such use of the funds, TransAct would invest the net proceeds in short-term, interest-bearing instruments or other investment-grade securities, it said.

In August, TransAct reported a net loss of just under US$1.9 million for the second quarter, on net sales that were down 53.4 percent year-on-year, to just below US$5.3 million.

It cited the ongoing Covid-19 pandemic and its general effects on the business outlook of the industries it serves, as a major factor in the result.

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