MIAMI – SKYX Platforms Corp. (NASDAQ: SKYX), a technology company specializing in smart platform technologies for homes and buildings, announced that it has secured an $11 million preferred stock investment without warrants, at a valuation of $2.00 per ordinary share. The investment was led by a global developer and owner of the Marriott hotel chain, which operates more than 60 hotels.
Key SKYX personnel have also shown confidence in the company’s prospects through significant personal investments. Chairman Steve Schmidt invested $500,000, while co-CEOs Lenny Sokolow and John Campi each invested $250,000 in the equity round. This insider purchase aligns with the company’s projection of achieving a positive cash flow statement by 2025.
SKYX reported sales of $58 million for 2023 and a record $21.4 million in sales for the second quarter of 2024. The company’s total addressable market in the US is estimated at $500 billion of dollars, with more than 4.2 billion roof applications. Revenue streams are expected to come from various segments, including product sales, royalties, licensing and the sale of global domestic rights.
The company has recently entered into several strategic collaborations. These include a partnership with house deposit (NYSE:), where SKYX products are now available in 100 stores and on the Home Depot website. A five-year global licensing agreement with general electricity (NYSE:) / GE Licensing aims to create a global roofing standard using SKYX’s smart technologies. Other collaborations with leading lighting distributors and manufacturers, such as Ruee Appliances, Kichler, Quoizel and EGLO, aim to enhance sales in the US, China, European markets and the online and construction segments.
SKYX’s innovative smart home technology has earned 7 CES awards and its safety applications have been incorporated into 10 segments of the National Electrical Code (NEC) Book. The company has requested a mandatory safety standardization for its ceiling outlet receptacle.
SKYX’s leadership team includes former executives from Fortune 100 companies such as Nielsen, Microsoft (NASDAQ 🙂, Disney, GE, Home Depot, office warehouse (NASDAQ:), and Chrysler, among others.
This announcement is based on a press release from SKYX Platforms Corp. and contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those projected in these statements.
In other recent news, SKYX Platforms Corp. has secured an $11 million investment led by Lance Shaner of Shaner Hotel Group, aimed at supporting the company’s growth goals. The company also announced the designation of its newly authorized convertible Series A preferred stock and Series A-1 preferred stock, which may impact its capital structure. In financial news, SKYX reported a significant increase in second quarter sales, reaching $21.4 million, up from $15 million in the same period last year. The company also narrowed its adjusted EBITDA loss to $2.1 million and its net cash loss to $2.7 million.
SKYX obtained a $3.5 million revolving credit facility through its subsidiary Belami, Inc., with Farmers & Merchants Bank of Central California. However, the company is currently facing possible delisting from the Nasdaq due to non-compliance with the exchange’s minimum offering price requirement, but has been granted a 180-day grace period to regain compliance.
Analysts at Roth/MKM initiated coverage of SKYX, assigning a Buy rating based on the potential of the company’s SkyOutlet system. The company has also announced strategic collaborations with industry giants such as Home Depot and GE Licensing. These recent developments reflect SKYX’s strategic decision to increase its credit facility, demonstrating its confidence in its financial stability and future prospects.
InvestingPro Insights
SKYX Platforms Corp. (NASDAQ: SKYX) recently secured a significant equity investment, demonstrating investor confidence in its smart home technology. This development aligns with several key InvestingPro metrics and insights.
According to data from InvestingPro, SKYX has shown impressive revenue growth, with a 461% increase in the trailing twelve months to Q2 2024. This substantial growth supports the company’s reported sales figures and its growing presence in the market through partnerships with leading retailers and manufacturers.
However, investors should note that SKYX is currently trading at a loss, with an adjusted operating income of -$33.46 million over the trailing twelve months. This aligns with advice from InvestingPro that the company is “burning cash quickly.” The recent $11 million equity investment could provide crucial financing as SKYX works toward its goal of being cash flow positive by 2025.
Despite these financial challenges, the market seems optimistic about SKYX’s potential. The stock has shown a strong performance of 45.17% in the last three months and 35.37% in the past week alone. This recent performance is reflected in another tip from InvestingPro, which notes a “significant performance over the past week.”
For investors considering SKYX, it’s worth noting that analysts anticipate sales growth in the current year, as highlighted by a tip from InvestingPro. This expectation aligns with the company’s expanding partnerships and growing product presence in major retail chains.
InvestingPro offers 11 additional tips for SKYX, providing a more comprehensive analysis for interested investors. These insights can help you understand the company’s financial health, its market position, and potential risks and opportunities.
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