ADOMANI Closes S-1 Secondary At Large Discount to Reg A+ IPO


ADOMANI Closes S-1 Secondary At Large Discount to Reg A+ IPO

Earlier this month, ADOMANI, Inc. (NASDAQ: ADOM) announced the closing of a registered public offering at a relatively large discount to its June 2017 Reg A+ IPO.

In June, ADOMANI raised $14.261 million through Regulation A+ by selling 2,852,275 million shares of common stock at a price of $5.00 per share. Following the Reg A+ offering, ADOMANI listed on Nasdaq. ADOM shares spiked as high as $18.31 in the first months of trading but the shares have since settled under its $5.00 IPO price.

adom chart

ADOM Price


Secondary at 40% Discount to IPO

In the first week of January, the company announced the pricing pricing of a best efforts public offering of 3,666,667 Units at a public offering price of $3.00 per Unit. Each Unit consists of one share of common stock and a warrant to purchase 1.5 shares of common stock at an exercise price of $4.50.

Buyers in this second public offering purchased common stock at a 40% discount to ADOM’s IPO price and got warrant coverage that IPO investors did not.

ADOMANI closed the offering on January 11th generating gross proceeds of $11 million.

Boustead Securities, LLC acted as the exclusive placement agent in connection with the offering, and Roth Capital Partners served as the financial advisor to ADOMANI in connection with the offering.

ADOM follows in the footsteps of MYO, the first Reg A+ to list on a national exchange, by completing a secondary offering at a significant discount to its Reg A+ IPO price.


Reg A+ to S-1

Interestingly, ADOMANI completed a full S-1 registered offering to complete its secondary but used Regulation A+ to raise capital in its IPO.

ADOMANI has, once again, demonstrated its leadership in pioneering a progression of equity offerings from Regulation A+ and Form 1-A for its NASDAQ IPO; to now completing a full S-1 Registration Statement offering,” said Dan McClory, Boustead Securities’ Head of Equity Capital Markets. “In our opinion, this is precisely what the SEC intended by enabling emerging growth companies to utilize the JOBS Act and access capital on a more efficient basis,” he continued. “ADOM has now raised more than $25 million through the public capital markets, ranking as the second-largest amount of gross funding proceeds for a Regulation A+ issuer,” McClory concluded.


Learn more HERE.




Click this link to learn why Reg A+ IPOs have preformed so poorly this year. 



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