KULR Technology Group, a provider of thermal management products used in aerospace and defense applications, closed an $8 million registered direct offering to fund its growth targets. The San Diego, California-based company manufactures carbon thermal management solutions to prevent safety hazards in battery applications. Its products serve a wide range of markets, from aerospace and defense to electric vehicles to energy storage to 5G infrastructure and cloud computing.
KULR says it will use the fresh round of cash to expand its product portfolio, take on more commercial growth opportunities, fulfill unannounced projects and repay short-term debt obligations. The increased shareholder equity and float will also help KULR meet the financial criteria necessary to up-list its stock to a national securities exchange. KULR is currently listed on the middle-tier OTCQB market.
“With increased shareholder equity and float, we expect the financing will help advance our up-listing objective, applications for which are currently underway,” KULR CEO Michael Mo stated in the announcement. “If approved, up listing could increase awareness of KULR in the investment community, broaden our base of institutional investors, and provide KULR shareholders with increased liquidity.”
The capital raise, closed on Dec. 31, involved the sale of 6.4 million shares of common stocks at $1.25 per share.
KULR stock price from Dec. 14, 2020, to Jan. 13, 2021. (Chart via TradingView)
In announcing the capital raise, KULR added that it expects strong revenue results for the fourth quarter of 2020. Unaudited estimates range from $200,000 to $250,000, up from $52,954 in revenue generated during the fourth quarter of 2019. These results would also outshine Q3 2020’s $136,849 in revenue.
However, full-year revenue is expected to fall short of last year’s numbers. KULR estimates 2020 revenue to range from $620,000 to $670,000, down from $830,938 in 2019.
Still, with fourth-quarter results exceeding previous expectations, KULR CFO Simon Westbrook expressed optimism about the company’s market opportunity. “With this performance some green shoots are emerging that could fuel optimism that the tailwinds of battery safety and electric mobility are starting to converge, with KULR well positioned at the nexus,” Westbrook stated.
In 2020, KULR was on a roll with space and defense partnerships, adding to its existing 30-plus NASA contracts. In September, NASA’s Marshall Space Flight Center awarded KULR a new contract to develop 3D-printed battery systems for manned and robotic space applications. Notably, KULR’s carbon thermal management technology was used to manage heat and temperature changes for components in NASA’s Perseverance Mars Rover.
Its carbon fiber thermal management solutions were also used in NASA’s Perseverance Mars Rover last year.
This month, the company announced it will provide heatsink design services for a Tier-1 aerospace and defense manufacturer to develop long-range and high-power hypersonic weapons.
Separately, KULR has been involved in the effort to establish new safety regulations for the electronics industry. In 2020, the company lent its expertise to assist U.S. and U.N. regulators in developing effective battery safety standards.