Actelis Networks Surges 69% on $30M Equity Line Agreement
Agreement with White Lion Capital gives the network solutions provider the right to sell shares, securing access to growth capital.
Shares of Actelis Networks (NASDAQ: ASNS) soared nearly 69% after the company announced a significant financing deal that provides it with access to substantial capital. The networking solutions provider entered into a common stock purchase agreement with White Lion Capital, securing the right to sell up to $30 million worth of its shares to the investment firm.
The deal, structured as an equity line of credit, gives Actelis the flexibility to raise capital on an as-needed basis. According to the , Actelis has the right, but not the obligation, to direct White Lion to purchase its common stock over a specified period. This arrangement is designed to provide the company with a ready source of funding for future growth initiatives, working capital, and general corporate purposes.
This strategic move provides while allowing management to control the timing and amount of stock sold, potentially minimizing dilution. The agreement includes a cap stipulating that share issuance cannot exceed 19.99% of Actelis' outstanding common stock without shareholder approval.
In a concurrent transaction, Actelis and White Lion also completed a private placement that raised approximately $850,000 in gross proceeds, providing an immediate injection of capital. As a commitment fee for the $30 million facility, Actelis will issue $750,000 worth of its stock to the investment firm.
Investors reacted with strong enthusiasm to the news, sending the stock price surging. The massive trading volume and price spike reflect market confidence in the company's enhanced financial position. The underscores the perceived value of the financial flexibility and growth capital the White Lion agreement represents for Actelis Networks' future operations.