The company's share plunged 9.7% following the offering.
SuperCom Inc.'s (Nasdaq: SPCB) share price plunged 9.7% on Nasdaq last Thursday on a large volume, after the company completed a secondary issue at lower than the market price. The share recovered slightly on Friday, closing at $12.30, reflecting a $164 million market cap. The price for the offering, in which SuperCom raised $25.2 million, was $12. This amount will significantly improve the company's balance sheet because it had $8.7 million cash at the end of the first quarter. The offering is likely to grow by an additional $3.8 million if the issue underwriters exercise their option to buy more shares. The shares issued (including for the underwriters) will constitute 15% of SuperCom's share capital. Cowen & Co. was the lead underwriter, with B. Riley, Craig-Hallum Capital Group, and Feltl.
Managed by president, CEO, and controlling shareholder Arie Trabelsi, SuperCom is active in two technology sectors: EID (smart ID cards and passports) and M2M competition - technologies for communications between machines. SuperCom's first quarter revenue totaled $7.7 million. Its GAAP net profit was $2.1 million, and it non-GAAP profit was $3.1 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 21, 2015
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