St. John’s, Nfld.-based marine technology company Kraken Robotics has raised $51.75 million CAD through a bought deal public offering.
Kraken’s stock price has risen by more than 215 percent since October 2023.
Toronto-based investment bank Cormark Securities served as lead underwriter of the offering on behalf of Canaccord Genuity, Beacon Securities, Raymond James, and Scotia Capital. In bought deal public offerings, an investment bank commits to buying a set offering from a publicly traded company, lowering the financial risk for both parties when trying to raise or invest a certain amount.
Kraken, which trades on the Toronto Stock Exchange under the symbol PNG, filed a short form prospectus with the securities commissions last week for a $45 million bought deal public offering of common shares at a price of $1.60 per common share. Additionally, the company granted the underwriters an over-allotment option to purchase an additional 15 percent of the offering’s shares, which was fully exercised in the final deal.
The result was a sale of more than 32.3 million shares at a roughly $0.17 per share discount compared to the $1.77 value its shares closed at one week prior to the details of the deal being announced. According to Google Finance, Kraken’s stock price has risen by $1.10, more than 215 percent, since October 2023.
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The proceeds of the deal are expected to be invested in expanding its facilities and increasing manufacturing capacity, Kraken said in a statement. The company added that the funds will provide flexibility so it can take advantage of acquisition opportunities, strengthen its balance sheet, and be used for general corporate purposes.
Founded in 2008, Kraken designs and develops sensors, software, and robotics for the marine industry. Since acquiring PanGeo Subsea in 2021, Kraken also provides subsea Robotics-as-a-Service capabilities, which includes geophysical and sonar surveys.
Kraken has seen notable success on the public markets in 2024. Earlier this year, the company closed a bought deal financing for proceeds of $20.1 million, entered an $85 million credit agreement with the Bank of Nova Scotia, and reported that it saw its revenues climb by 175 percent year-over-year during the first quarter of 2024.
Feature image courtesy Kraken Robotics.