Minim Inc. (MINM) stock prices were down 15.90% some time after market trading commenced on July 29th, 2021, bringing the price per share up to USD$2.38 early on in the trading day.
Pricing of Public Offering
July 29th 2021 saw the company announce the pricing of its underwritten public offering, wherein MINM stock will offer 10 million shares of its common stock. The public offering price has been set at USD$2.50 per share, with aggregate gross proceeds in the amount of USD$22.7 million expected to be generated before the deduction of expenses related to the offering.
Additional Offering Details
The offering comes equipped with a 30-day option for underwriters to purchase up to an additional 1.5 million common shares at the public offering price. The closure of the offering is expected for August 2nd, 2021. Capital generated from the offering is planned to be allocated towards general corporate and working capital purposes, including, but not limited to, inventory optimization, development and marketing of new product offerings, and the company’s expansion into overseas markets.
MINM Stock’s Financial Growth
The second quarter of fiscal 2021 reported MINM stock having accelerated consolidated revenue growth rate of almost 43%, as compared to numbers reported for the prior-year quarter. The quarter also saw consolidated revenue in the amount of USD$14.75 million, up from the USD$10.3 million reported for the second quarter of 2020. Gross margins also continued to improve, with Q2 2021 having achieved a gross margin of 30%, up more than 900 basis points from the gross margin reported for the prior-year quarter.
MINM Stock Consolidating Market Presence
The company’s Motorola MG8702 product was the category leader during Amazon Prime Day in terms of units sold for DOCSIS 3.1 gateways. The high-speed modem comes equipped with a powerful AC3200 router and a bundled mobile app facilitate the provision of an all-in-one package for consumers’ homes. Furthermore, MINM stock reported strong sales for the Motorola MH7020 expandable AC2200 Mesh System in retail. Strong sales of the software-driven, higher ASP products drove a 300% increase in deferred revenue from software subscriptions, as compared to the prior quarter.
Future Outlook for MINM Stock
Armed with a strengthened balance sheet as a result of its public offering, as well as the success of its second-quarter financial reports for 2021, MINM stock is poised to leverage its additional capital to continue its trajectory of growth. Investors are hopeful that management will be able to spearhead the effective proliferation of its product portfolio across global markets.
