Siyata Moblie Inc. (SYTA) announced the pricing of a $20 million underwritten public offering on January 06, 2021. Consequently, the stock collapsed in the premarket session on Friday.
In the previous regular session, the stock barely kept in the green with a slight gain of 0.62%. After closing the session at $3.23, SYTA plunged deep by 42.72% premarket, at the last check. Hence, the stock was trading at $1.86 apiece at the time of writing in the premarket.
The cellular communications systems provider, Siyata Moblie Inc. has a market capitalization of $16.14 million. Currently, the company has 5.03 million shares outstanding in the market. Moreover, SYTA has lost 12.70% in the past five days, while losing 69.47% in the past year.
SYTA’s Public Offering
On Thursday, the company announced a public offering of 8,695,652 of its common shares along with the warrants for their purchase. The combined effective offering price of each common share together with one warrant is $2.30. While the common share and warrant can only be bought together, they would be separable promptly upon issuance.
Besides the original offering, the SYTA also offered a 45-day option to the underwriters for buying additional 1,304,347 common shares at the offering price. Furthermore, the expected close of the offering is on or about January 11 as per customary closing conditions.
The expected gross proceeds from the offering are $20 million approx., less discounts, and commissions. SYTA will be using some of the proceeds for repaying a portion of its outstanding senior secured convertible promissory note. The remaining proceeds from the offering are intended for general corporate purposes.
The sole book-running manager for the offering in Maxim Group LLC.
$1.3M Purchase Order
On December 07, the company announced receiving a $1.3 million purchase order for its SD7 ruggedized devices, VK7 vehicle units, and other accessories. This purchase order is essentially for police and first responder customers in the EMEA (Europe, the Middle East, and Africa). As a result, the year-to-date DS7 and VK7 orders reached $1.8 million.
The DS7 is a PPT (Push-to-Talk) ruggedized, LTE, Wi-Fi, and Bluetooth-enabled, easy-to-use device. Additionally, the VK7 is a first-of-its-kind car kit with an integrated speaker, slide-in connection sleeve the SD7.
SYTA’s Financials
On October 14, the company announced its financial results for the second quarter of 2021. According to this, SYTA had a net loss of $10,862,538 on revenue of $4,388,954 in the second quarter of 2021. This compares to a net loss of $627,004 on revenue of $4,414,031 in the year-ago period.
