Westport Fuel Systems Inc. (USA) (NASDAQ:WPRT)
Shares of Westport Fuel Systems Inc. (USA) (NASDAQ:WPRT) traded lower in Friday’s trading session after the company announced a dilutive public offering of its shares. The company also issued revenue guidance and a Pro Forma cash summary for the quarter ended June 30, 2017. The stock plunged 15.46% to end the week at $1.64 a share.
Westport Fuel Systems Inc. (USA) (NASDAQ:WPRT) systems is a transportation technology company that provides low emission engine and fuel systems technologies. The company operates in the automotive, Industrial, corporate, and technology fuel sectors. The company serves customers in more than 70 countries by developing and distributing delivering fuel efficiency and environmental benefits.
As part of the public offering, the company is offering 16.7 million shares at a price of $1.50 a share. Underwriters have been granted an option to purchase an additional 2.5 million shares. Gross proceeds are expected to be around $25 million before deduction of discounts and expenses.
Some directors and executive officers have also made requests to purchase the company’s common shares, pursuant to a non-brokered private placement. The private offering does not form part of the announced public offering but expected to take place concurrently. However, shares offered will be subject to a statutory holding period.
The offering should close on July 19, 2017, subject to fulfillment of customary closing conditions. Oppenheimer & Co is acting as the sole book running manager. In addition to the public offering, Westport Fuel Systems Inc. (USA) (NASDAQ:WPRT) has announced it expects revenues between $57 million and $59 million for the quarter ended June 30, 2017. The company also expects to be cash positive in early 2018.
Separately, Westport Fuel Systems Inc. (USA) (NASDAQ:WPRT) has confirmed the appointment of Daniel M. Hancock into the board of directors effective July 7, 2017. Hancock was previously a member of the advisory board. He joins the board of directors with more than 43 years of service in General Motors Company (NYSE:GM) powertrain engineering.
“Dan’s knowledge and extensive experience in the automotive sector, combined with his familiarity with Westport Fuel Systems as a former Advisory Board member, will provide strategic acumen to further strengthen our Board during this transformative time in the Company,” said Brenda Eprile, Westport Fuel Systems Inc. (USA) (NASDAQ:WPRT) Chairman of the Board.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.