GTI
Graphjet Technology
NASDAQ
S-1: Graphjet Technology Files for $1.5 Million Class A Ordinary Shares Offering
Sentiment:
Registration Statement
3 October 2024 4:28 PM
Graphjet Technology announces a best efforts offering of Class A ordinary shares, aiming to raise $1.5 million for working capital and general corporate purposes.
Worse than expected
The company has a very limited operating history, which may make it difficult for investors to evaluate the success of its business.
The company's independent registered public accounting firm's report contains an explanatory paragraph that expresses substantial doubt about its ability to continue as a going concern.
Delay expected
Graphjet Technology believes its first production from its manufacturing plant in Kuantan will be in the first quarter of fiscal year 2025.
Capital raise
Graphjet Technology is conducting a best efforts offering to sell Class A Ordinary Shares to raise up to $1.5 million.
The offering price is fixed at $ per share, and the offering period is 180 days after the effective date of the registration statement.
The company intends to use the proceeds for working capital and general corporate purposes.
Summary
- Graphjet Technology has filed a registration statement for a best efforts offering of its Class A ordinary shares.
- The company aims to raise a maximum of $1.5 million through the offering, with no minimum amount required to be sold.
- The offering price is fixed at $ per share and will continue for 180 days after the registration statement becomes effective.
- Proceeds will be used for working capital and general corporate purposes.
- The company's officers and directors will be responsible for selling the shares, with no underwriting discounts or commissions involved.
- Graphjet Technology's Class A Ordinary Shares are listed on the Nasdaq Global Market under the symbol GTI, and its Public Warrants are listed on the OTC under the symbol GTIW.
- The company is an emerging growth company and is subject to reduced public company reporting requirements.
- Investing in Graphjet Technology's Class A Ordinary Shares is highly speculative and involves a high degree of risk.
Sentiment
Score: 4
Explanation: The document presents a mixed sentiment. While it highlights the company's innovative technology and potential for growth, it also acknowledges significant risks and uncertainties, including a limited operating history, dependence on third parties, and potential competition. The mention of the auditor's doubt about the company's ability to continue as a going concern further dampens the sentiment.
Highlights
- Graphjet Technology is conducting a best efforts offering to sell Class A Ordinary Shares to raise up to $1.5 million.
- The offering price is fixed at $ per share, and the offering period is 180 days after the effective date of the registration statement.
- The company intends to use the proceeds for working capital and general corporate purposes.
- Graphjet Technology's Class A Ordinary Shares are listed on the Nasdaq under the symbol GTI, and its Public Warrants are listed on the OTC under the symbol GTIW.
- The company's officers and directors will sell the shares on a best efforts basis, with no underwriting discounts or commissions.
- Graphjet Technology is an emerging growth company, which allows it to take advantage of reduced public company reporting requirements.
Positives
- The company's officers and directors will sell the shares on a best efforts basis, which reduces costs associated with underwriting.
- Graphjet Technology is an emerging growth company, which allows it to take advantage of reduced public company reporting requirements.
Negatives
- The offering is a best efforts offering, meaning there is no guarantee that all or any of the shares will be sold.
- The offering price is arbitrarily determined and may not relate to the company's assets, book value, or earnings.
- Investors will experience immediate dilution upon the closing of the offering.
- The company has broad discretion as to the use of the net proceeds from this offering and may not use them effectively.
- The company has a very limited operating history, which may make it difficult for investors to evaluate the success of its business.
- The company's independent registered public accounting firm's report contains an explanatory paragraph that expresses substantial doubt about its ability to continue as a going concern.
Risks
- The company's business and growth strategy depend on its ability to maintain and expand a network of qualified providers.
- The company is dependent on its relationships with third-party manufacturers to assist in the production of its products.
- The company may face intense competition, which could limit its ability to maintain or expand market share within its industry.
- The company may be subject to litigation or regulatory investigation, which could harm its business.
- The company is vulnerable to severe weather conditions and natural disasters, which could severely disrupt the normal operation of its business.
- The company conducts business in a heavily regulated industry and if it fails to comply with these laws and government regulations, it could incur penalties.
- The company faces uncertainty as to whether it will achieve its strategic initiatives including construction of its manufacturing plan and whether it will yield the expected benefits.
- Many countries have difficult and unpredictable legal systems and underdeveloped laws and regulations that are unclear and subject to corruption and inexperience, which may adversely impact our results of operations and financial condition.
- Many of the economies in Asia are experiencing substantial inflationary pressures which may prompt the governments to take action to control the growth of the economy and inflation that could lead to a significant decrease in the company's profitability.
- The company depends on its talent to grow and operate its business, and if it is unable to hire, integrate, develop, motivate and retain personnel, it may not be able to grow effectively.
Future Outlook
The company intends to use the gross proceeds from this offering for working capital and general corporate purposes and expects to open its first manufacturing plant in the first quarter of fiscal year 2025.
Industry Context
The document highlights Graphjet Technology's position in the artificial graphene and graphite market, emphasizing its unique use of palm kernel shells as a renewable resource. It acknowledges competition from larger, established players, particularly those based in China, but emphasizes Graphjet's cost and quality advantages. The document also mentions the impact of the Inflation Reduction Act of 2022 on the demand for electric vehicles and the materials needed to construct them.
Comparison to Industry Standards
- The document states that Graphjet's technology produces graphite at a cost of approximately $4,500 per ton, which is significantly lower than both natural and other sources of artificial graphite.
- The document claims that Graphjet can sell graphene at a price of $15 per gram, which is more than 80% lower than the current market price.
- The document mentions that the global graphite market is anticipated to grow at a CAGR of 8.5% over the period from 2021 to 2031, to $50 billion, from $22 billion in 2021.
- The document cites Insight Partners' estimate that the global graphene market is expected to grow more rapidly from $821.2 million in 2021 to $7.56 billion in 2028, a CAGR of 37.3%.
Stakeholder Impact
- Shareholders may experience dilution in the future.
- The market price of Class A Ordinary Shares may be affected by factors different from those that affected the prices of Energem Class A Ordinary Share.
- The market for our securities has been volatile and may continue to be volatile, which would adversely affect the liquidity and price of our securities.
Next Steps
- The company's officers and directors will sell the Class A Ordinary Shares on a best efforts basis.
- The company will use the proceeds from the offering for working capital and general corporate purposes.
- The company expects to open its first manufacturing plant in the first quarter of fiscal year 2025.
- The company will continue to develop related products and efficient manufacturing to deliver a desirable future return.
Key Dates
- August 6, 2021: Company was incorporated in the Cayman Islands.
- November 18, 2021: Company completed its initial public offering.
- September 22, 2022: Company received approval for its patent application for a palm-based synthetic graphite and the preparation method thereof.
- December 27, 2022: Company executed its first supply agreement with Toyoda Trike Inc.
- March 14, 2024: Company consummated the Business Combination with Graphjet Technology Sdn. Bhd.
- February 28, 2024: Energem shareholders considered and approved the Equity Incentive Plan.
- October 3, 2024: Date of the prospectus.
Keywords
Class A Ordinary Shares, Graphjet Technology, Offering, Graphene, Graphite, Securities, Palm Kernel Shells, Emerging Growth Company, Nasdaq, Best Efforts
GTI
Graphjet Technology
NASDAQ
Sector: TBD
Filings with Classifications
Worse than expected
30 April 2025 4:01 PM
8-K Filing
- The company received a delisting notice from Nasdaq due to its market value falling below the required threshold.
Capital raise
30 April 2025 4:01 PM
8-K Filing
- The document mentions the risk that Graphjet will need to raise additional capital to execute its business plans.
- It also notes that such capital may not be available on acceptable terms or at all.
Worse than expected
6 March 2025 9:30 PM
8-K Filing
- The company received notices from Nasdaq for failing to meet listing requirements due to delayed financial filings and a low market value.
Delay expected
6 March 2025 9:30 PM
8-K Filing
- The company delayed filing its Quarterly Report on Form 10-K for the period ended September 30, 2024.
- The company delayed filing its Annual Report on Form 10-Q for the period ended December 31, 2024.
Capital raise
6 March 2025 9:30 PM
8-K Filing
- The company may need to raise additional capital to execute its business plans.
- There is a risk that additional capital may not be available on acceptable terms or at all.
Worse than expected
27 February 2025 9:30 PM
8-K Filing
- The company received a delisting notice from NASDAQ due to the share price falling below $1 for 32 consecutive days.
Worse than expected
14 January 2025 6:03 PM
SEC Form 4
- The complete divestment by a 10% owner is generally viewed negatively by the market.
Worse than expected
10 January 2025 7:25 PM
SEC Form 4
- The sale of a large number of shares by a major shareholder is generally viewed negatively by the market.
Worse than expected
8 January 2025 5:03 PM
SEC Form 4 Filing
- A major shareholder selling a significant number of shares is generally viewed negatively by the market.
Worse than expected
8 January 2025 4:30 PM
Director Resignation Announcement
- The resignation of three directors, including an executive and two independent members, is a negative development that could impact investor confidence.
Worse than expected
6 January 2025 2:23 PM
SEC Form 4
- The sale of shares by a major shareholder is generally viewed negatively by the market.
Worse than expected
30 December 2024 1:14 PM
SEC Form 4 Filing
- The document indicates that a major shareholder is selling a significant portion of their shares, which is generally considered a negative signal.
Worse than expected
20 December 2024 7:25 PM
SEC Form 4 Filing
- The significant sale of shares by a major shareholder is generally viewed negatively by the market.
- The decreasing weighted average sale price over the three days suggests a lack of confidence in the stock.
Worse than expected
17 December 2024 5:15 PM
SEC Form 4
- The sale of a significant number of shares by a major shareholder is generally viewed negatively by the market.
Capital raise
5 December 2024 5:27 PM
Personnel Change Announcement
- The document mentions the risk that Graphjet will need to raise additional capital to execute its business plans.
- It also states that this capital may not be available on acceptable terms or at all.
Capital raise
1 November 2024 4:06 PM
S-1/A Filing
- The document details a best efforts offering of 718,390 Class A Ordinary Shares at $2.088 per share.
- The company aims to raise approximately $1,450,000, after deducting estimated expenses of $50,000, for working capital and general corporate purposes.
Worse than expected
1 November 2024 4:06 PM
S-1/A Filing
- The company has incurred significant losses and has not recorded any revenue to date.
- The company's auditor has expressed substantial doubt about its ability to continue as a going concern.
- The company's current liabilities exceed its current assets.
Delay expected
1 November 2024 4:06 PM
S-1/A Filing
- The document mentions that the company was unable to export graphite from China in 2023, therefore it did not produce any revenue pursuant to the supply agreement in 2023.
- The document states that Graphjet expects to open its first manufacturing plant in the first quarter of fiscal year 2025.
Worse than expected
25 October 2024 4:46 PM
S-1/A Filing
- The company's auditor has expressed substantial doubt about its ability to continue as a going concern.
- The company has a limited operating history and has not recorded any revenue since inception.
- The company faces intense competition in the graphene and graphite industry.
Delay expected
25 October 2024 4:46 PM
S-1/A Filing
- Currently, Graphjet Technology believes its first production from this plant will be in the first quarter of fiscal year 2025.
- We were unable to export graphite from China in 2023, therefore we did not produce any revenue pursuant to the supply agreement in 2023.
Capital raise
25 October 2024 4:46 PM
S-1/A Filing
- The filing pertains to the offer and sale of Class A Ordinary Shares, with no minimum offering amount.
- The offering is a best efforts offering, with officers and directors using their best efforts to sell the shares at a fixed price of $ per share for 180 days.
- Proceeds from the sale will be used for working capital and general corporate purposes.
Worse than expected
3 October 2024 4:28 PM
Registration Statement
- The company has a very limited operating history, which may make it difficult for investors to evaluate the success of its business.
- The company's independent registered public accounting firm's report contains an explanatory paragraph that expresses substantial doubt about its ability to continue as a going concern.
Delay expected
3 October 2024 4:28 PM
Registration Statement
- Graphjet Technology believes its first production from its manufacturing plant in Kuantan will be in the first quarter of fiscal year 2025.
Capital raise
3 October 2024 4:28 PM
Registration Statement
- Graphjet Technology is conducting a best efforts offering to sell Class A Ordinary Shares to raise up to $1.5 million.
- The offering price is fixed at $ per share, and the offering period is 180 days after the effective date of the registration statement.
- The company intends to use the proceeds for working capital and general corporate purposes.
Worse than expected
28 August 2024 5:30 PM
S-1/A Filing
- The Public Warrants and the Sponsor Warrants are out of the money, which means that the trading price of the Class A Ordinary Shares underlying the Warrants is below the $11.50 exercise price of the Warrants.
- The sale of the securities being registered in this prospectus, or the perception in the market that such sales may occur, could result in a significant decline in the public trading price of our Class A Ordinary Shares.
Worse than expected
27 August 2024 4:15 PM
Current Report
- The resignation of the auditor and the going concern note in the audit report are both negative indicators.
Delay expected
12 August 2024 4:15 PM
Quarterly Report
- The company has deferred its plans to open a manufacturing plant in Kuantan, Malaysia.
- The company's production start date has been delayed to late August 2024.
Worse than expected
12 August 2024 4:15 PM
Quarterly Report
- The company's net loss of $14.157 million for the nine months ended June 30, 2024, is significantly worse than the $1.429 million loss for the same period in 2023.
- The company's general and administrative expenses have increased substantially, indicating higher operational costs.
- The company's current liabilities exceed its current assets by $2.054 million, raising concerns about its financial stability.
Capital raise
12 August 2024 4:15 PM
Quarterly Report
- The company states that it may seek to raise additional funds through equity and debt financing or from other sources.
- The company acknowledges that its future is dependent upon its ability to obtain financing to continue operations and attain profitable operations.
- The company's auditor has expressed substantial doubt about the company's ability to continue as a going concern, which may make it more difficult to attract investors.
Capital raise
19 July 2024 4:16 PM
S-1/A Filing
- The document details a primary offering of up to 12,028,075 Class A Ordinary Shares, including shares issuable upon exercise of Public and Sponsor Warrants.
- The company expects to continue efforts to raise additional capital to support its long-term business objectives.
Worse than expected
19 July 2024 4:16 PM
S-1/A Filing
- The current market price of the Class A Ordinary Shares is significantly below the exercise price of the warrants.
- The current market price is significantly below the price at the time of the Company's initial public offering.
Delay expected
25 June 2024 4:06 PM
Registration Statement
- We were unable to export graphite from China in 2023, therefore we did not produce any revenue pursuant to the supply agreement in 2023.
Worse than expected
25 June 2024 4:06 PM
Registration Statement
- The company has not had any sales of its products to date.
- The company's Public Warrants and the Sponsor Warrants are out of the money, which means that the trading price of the Class A Ordinary Shares underlying the Warrants is below the $11.50 exercise price of the Warrants.
Capital raise
25 June 2024 4:06 PM
Registration Statement
- The filing covers a primary offering of up to 12,028,075 Class A Ordinary Shares, including shares issuable upon exercise of public and sponsor warrants.
- It also includes a secondary offering for the resale of up to 108,848,493 Class A Ordinary Shares and 528,075 warrants by selling securityholders.
- The primary offering could generate up to approximately $138.3 million if all warrants are exercised for cash.
Worse than expected
18 June 2024 8:24 PM
Quarterly Report
- The company reported a significant net loss of $11.594 million for the quarter, which is a substantial increase compared to the previous year.
- The company's general and administrative expenses have increased significantly, indicating higher operating costs.
- The company's auditor has expressed substantial doubt about the company's ability to continue as a going concern, which is a major concern.
Capital raise
18 June 2024 8:24 PM
Quarterly Report
- The company may seek to raise additional funds through equity and debt financing or from other sources.
- The company's future is dependent upon its ability to obtain financing to continue operations and attain profitable operations.
Worse than expected
4 June 2024 4:16 PM
8-K Filing
- The company failed to file its quarterly report on time, resulting in a delinquency notice from Nasdaq, which is worse than expected.
Delay expected
4 June 2024 4:16 PM
8-K Filing
- The company's quarterly report for the period ended March 31, 2024, was not filed on time, leading to the Nasdaq delinquency notice.
Capital raise
2 April 2024 5:24 PM
Investor Presentation
- The new manufacturing facility is subject to capital funds being raised.
Better than expected
2 April 2024 5:24 PM
Investor Presentation
- The company's production costs are significantly lower than industry standards.
- The company's carbon footprint is significantly lower than industry standards.
- The company's use of a renewable waste product is a significant advantage.
Capital raise
20 March 2024 5:03 PM
Merger Announcement
- The document mentions a private financing (PIPE) that raised $2.5 million.
- The document also indicates that the company may need to raise additional capital in the future to execute its business plans.
Better than expected
4 March 2024 12:30 PM
Press Release
- The company is accelerating its production timeline, expecting commissioning by Q2 2024 and revenue generation in 2024, which is faster than previously anticipated.
Delay expected
20 February 2024 3:30 PM
Meeting Postponement Announcement
- The extraordinary general meeting of shareholders has been delayed from February 23, 2024, to February 28, 2024.
Delay expected
20 February 2024 9:00 AM
Material Definitive Agreement Update
- The document details a delay in the business combination deadline from February 18, 2024 to August 18, 2024.
Delay expected
23 January 2024 3:52 PM
Current Report
- The business combination deadline has been extended to February 18, 2024.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.