Adomani Inc. (NASDAQ:ADOM), a company that provides zero emission vehicle solutions, has completed its Regulation A or “Reg A+” common stock offering and listing on the NASDAQ Capital Market under the ticker symbol ADOM. Adomani raised over $14 million in total. The company reported that certain selling stockholders sold more than 2.5 million shares in the offering at $5 per share, yielding net proceeds to the company of approximately $9.2 million. Boustead Securities aided Adomani in the IPO. Boustead recently acquired the equity crowdfunding platform FlashFunders.
Dan McClory, Head of Equity Capital Markets at Boustead Securities, stated;
“Adomani continues to attract investors with great interest since the initial closing a month ago. It is exciting to see Adomani become the first-ever Reg A+ offering to trade on NASDAQ.”
The Reg A+ IPO is described as enabling Adomani to use its patented technology to accelerate the design, manufacture and marketing of its zero-emission electric and hybrid drivetrains for new vehicles and for use in existing vehicles, including targets of school buses and medium to heavy-duty commercial fleet vehicles.
Adomani says replacement drivetrain systems can reduce the total cost of vehicle ownership for fleet operators. Their systems also helps fleet owners to unlock further benefits of green technology, such as addressing the challenges of traditional fuel price cost instability and local, state and federal environmental regulatory compliance.
“Electric fleets will be an important part of tomorrow’s transportation infrastructure,” stated Jim Reynolds, Adomani CEO. “This capital raise is a milestone achievement that will allow us to grow quickly and take first mover advantage at a transformative time in the market, while allowing our new and existing investors to share in the exciting road ahead.”
Adomani is the first Reg A+ issuer to use the updated securities exemption to raise capital and then trade shares on the NASDAQ. Under Reg A+, issuers may crowdfund up to $50 million in a scaled disclosure environment.
Boustead Securities served as lead underwriter and Network 1 Financial Securities as co-underwriter for the offering. Adomani initially traded above the IPO price in light volume. In an updated Offering Circular, Adomani said that delays in connection with the completion of the offering had created subsequent delays in implementing their business plan. The document also addressed “going concern” questions, stating, “based on management’s plans and the significant capital raised in this offering, that substantial doubt has been alleviated.”
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