One Stop Systems has established a program allowing it to sell up to $50 million of its common stock over time through Piper Sandler. The arrangement gives the company a flexible way to raise equity capital, but does not require it to sell any shares.
- How sales would work: Piper Sandler may sell shares in market transactions, including on Nasdaq, when instructed by One Stop Systems. The company can set limits on how many shares are offered and the minimum price at which they may be sold. With the company’s written consent, sales may also be made through negotiated transactions or other permitted methods.
- Costs: One Stop Systems will pay Piper Sandler a commission equal to 3% of the gross proceeds from shares sold, and will reimburse certain expenses.
- Control over the program: The company may suspend sales, and either party may terminate the agreement with notice. The company is not obligated to sell shares.
- Offering capacity: The $50 million is the maximum aggregate offering price under the program; the announcement does not specify how much the company expects to raise or how it would use any proceeds.
Investor implications: If One Stop Systems sells shares, the new stock would increase the share count and dilute existing shareholders’ ownership. The actual amount of any dilution depends on whether shares are sold, and at what prices. The program provides access to capital, but its terms do not establish that a sale is imminent.