Company Expects to Receive $3.3 million through Early Warrant Exercises
WAKEFIELD, Mass., June 9, 2020 /PRNewswire/ -- Byrna Technologies Inc. (OTCQB: BYRN) (CSE: BYRN) ("Byrna" or the "Company") finished the 2nd Quarter of 2020 (ending May 31st) with record sales of approximately (US)$1,180,000 net of reserves. This brought Byrna's 2020 YTD sales to (US)$1,329,000 versus total sales of (US)$117,000 for the same period in 2019 – an increase of more than 1,000%.
The Company's backlog as of May 31, 2020 stood at approximately (US)$193,000. Bryan Ganz, CEO of Byrna, stated, "the biggest challenge we are currently facing is keeping up with rapidly growing demand. To ensure that we can satisfy the market, the Company is accelerating its plans to open a second manufacturing facility in Ft. Wayne, Indiana. We expect to have this facility on-line by late summer. In the meantime, we want to thank our loyal customers for their patience and continued support."
Based on the recent appreciation in the Company's stock price, a provision allowing for early termination was triggered in more than 18 million warrants issued in November of 2017. The Company has notified the warrant holders this week that it is exercising this early termination right and that the warrants will expire August 31, 2020.
With the stock currently trading at more than a 300% premium to the exercise price of the warrants, the Company expects that most (if not all) of the warrant holders will exercise their warrants prior to the end of Q-3 (August 31st). This will bring in approximately $3.3 million in fresh equity without any investment banking or legal fees. This is on top of the $3.2 million raised earlier in Q2.
With this influx of capital, the Company expects to have sufficient cash to fund operations for the foreseeable future. Additionally, these recent capital raises, coupled with the retirement of over $6.5 million of debt in the 2nd Quarter, have put the Company closer to its goal of up-listing to the NASDAQ Capital Market. The Company plans to apply to the NASDAQ at the appropriate time.
