The company announced it will price the 2.86 million share offering at $3.50 a share. The underwriters of the offering have a 30-day option to buy up to an additional 429,000 shares.
Arotech expects gross proceeds of about $10 million from the offering. The company plans to use the net proceeds for general corporate purposes including repayment of debt, funding research, development and product manufacturing, acquisitions, investments, working capital, and capital expenditures.
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TheStreet Ratings team rates AROTECH CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate AROTECH CORP (ARTX) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."
Highlights from the analysis by TheStreet Ratings Team goes as follows: