CUI Global, Inc. Closes "Over Allotment" Funding for Another $1.5 Million
TUALATIN, Ore., March 6, 2012 /PRNewswire/ -- CUI Global, Inc. (NASDAQ: CUI), a platform company dedicated to the acquisition, development, and commercialization of new, innovative technologies, today announced that the company has successfully closed the "Over Allotment Provision" in its Underwriting Agreement, bringing another $1,500,000 to the company. The Over Allotment was filled with the assistance of the company's US Investment Banker, Merriman Capital, Inc. (OTCQX: MERR).
Such an Over Allotment or "Green Shoe" provision is contained in an underwriting agreement and gives the underwriter the right to sell investors more shares than originally planned by the issuer. This is most commonly done if the demand for a security issue proves higher than expected. It is legally referred to as an over-allotment option.
The proceeds of this over-allotment option, much like those raised in the initial offering, will be used by the company for working capital and to rapidly bring its new Vergence™, Novum®, and Solus™ Technologies to the marketplace.
"The fact that we were able to attract even more funding to the company and fully fund and close the Green Shoe Provision is yet more evidence of the market's acceptance of our continuing strategy to acquire leading edge technologies and bring them to market using our platform capabilities," explained CUI Global's president and CEO, William Clough.
"These funds will enable us to accelerate the development of our Novum and Solus brands by, among other things, acquiring more engineering support, while assisting us in gaining more rapid market penetration of our Vergence Gas Metering Technology by increasing its worldwide exposure," continued Clough.
"We continue to focus all of our efforts on increasing revenues, eliminating or reducing costs, and enhancing shareholder value in order to reward the confidence placed in us by our shareholders and new investors," Clough concluded.
About CUI Global, Inc.
Delivering Innovative Technologies for an Interconnected World . . . . .
CUI Global is a publicly traded platform company dedicated to maximizing shareholder value through the acquisition and development of innovative companies and technologies. From its Vergence GasPT2 platform targeting the energy sector, to its subsidiary CUI Inc.'s industry leading digital power platform targeting the networking and telecom industries, CUI Global has built a diversified portfolio of industry leading technologies that touch many markets. As a publicly traded company, shareholders are able to participate in the opportunities, revenues, and profits generated by the products, technologies, and market channels of CUI Global and its subsidiaries. CUI Global prides itself on operating with the same level of integrity, respect, and philanthropic dedication that was put in place by CUI Inc.'s founder more than 20 years ago. It is these values that allow the company to make a difference in the lives of their customers, their community, their employees, and their investors. Recently, a move was made to merge and streamline resources with its subsidiary CUI Inc. in order to create a unified, international brand that now positions CUI Global for further strategic expansion.
About CUI Inc
CUI Inc is a technology company dedicated to the development, commercialization, and distribution of new, innovative electro-mechanical products. Over the past 20 years, CUI has become a recognized name in electronic components worldwide in the areas of power, interconnect, motion control, and sound. CUI's solid customer commitment and honest corporate message are a hallmark in the industry. CUI is a wholly owned subsidiary of CUI Global, Inc. For more information, please visit www.cui.com.
For more information, please visit www.cuiglobal.com and www.cui.com.
Important Cautions Regarding Forward Looking Statements
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, our reliance on third-party manufacturers and suppliers, government agency budgetary and political constraints, new or increased competition, changes in market demand, and the performance or reliability of our products. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward-looking statements. Additional information with respect to these and other factors, which could materially affect the company and its operations, are included in certain forms the company has filed with the Securities and Exchange Commission.
SOURCE CUI Global, Inc.
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