Cybersecurity tech supplier Castellum slashes proposed providing to $4M from $13M

Cybersecurity companies supplier Castellum (ONOV) (NYSEMKT:CTM) has downsized a proposed uplisting and public providing to $4M from $13M.

Castellum mentioned in a submitting that it’s now taking a look at providing 1.4M shares, with promoting shareholders providing an extra 150K shares, priced between $2 and $3 per share. The deal would elevate round $4M if priced on the midpoint at $2.50 per share, with the corporate seeing gross proceeds of round $3.5M.

Underwriters can be granted a 45-day choice to purchase as much as 225K further shares. EF Hutton is serving as lead underwriters. Castellum has been permitted to listing its shares on NYSE American underneath the image CTM.

The deal is considerably decrease than the one proposed in a Sept. 30 submitting, which sought to boost a complete of $13M. That deal entailed the corporate providing 2.7M shares priced between $3 and $5 per share, with promoting shareholders providing 520K shares.

Primarily based in Maryland, Castellum is a supplier of cybersecurity and IT software program and companies, primarily for presidency businesses. The corporate posted a 2021 web lack of $8M on income of $25M.

Castellum shares are presently traded OTC underneath the image ONOV. The corporate intends to conduct a 1-for-20 reverse inventory break up forward of the uplisting, which had been anticipated to happen on Oct. 7.

For extra on Castellum, try SA contributor Donovan Jones’s “Castellum Proposes Phrases for $13M Uplisting.”