Kraken Robotics Inc. Boosts Growth with $100 Million Public Offering for Subsea Technology Expansion
- Kraken Robotics Inc. announced a $100 million public offering to strengthen its position in subsea technology.
- Proceeds will support acquisitions and enhance financial stability for securing contracts in the competitive sector.
- Trading for Kraken is set to resume on June 18, 2025, following a temporary halt by CIRO.
Kraken Robotics Inc. Strengthens Market Position with $100 Million Offering
Kraken Robotics Inc. has recently announced a significant $100 million public offering of common shares, a strategic maneuver intended to enhance the company’s standing as a leading global prime contractor in subsea technology. The offering involves selling 37.6 million shares at a price of $2.66 each, facilitated by Desjardins Capital Markets as the sole lead underwriter. This initiative is poised to generate gross proceeds of over $100 million, marking a pivotal step in Kraken’s growth strategy. The underwriters have an additional 15% over-allotment option, allowing them to purchase more shares within 30 days post-closing to stabilize the market.
The proceeds from this offering are earmarked for several key initiatives aimed at fostering Kraken's expansion. By bolstering its financial position, the company plans to enhance its capacity for larger acquisitions, thereby solidifying its market share in the competitive subsea technology sector. Moreover, the funds will be utilized to demonstrate a stronger financial foundation, crucial for securing government and commercial contracts. This move not only reinforces Kraken’s commitment to innovation in subsea solutions—such as advanced 3D imaging sensors and power solutions—but also positions it to address the growing challenges of ocean exploration and safety.
Pending regulatory approval, the offering is expected to close around July 7, 2025, with shares being offered in various Canadian provinces, excluding Quebec. Additionally, the shares may be available for private placement in the U.S. under relevant exemptions. As Kraken Robotics continues to serve clients across more than 30 countries, this capital infusion is anticipated to significantly contribute to its long-term growth and operational capabilities, ultimately enhancing its competitive edge in the subsea technology arena.
In a related development, the Canadian Investment Regulatory Organization (CIRO) recently implemented a trading halt for Kraken Robotics Inc., effective from June 17, 2025. This temporary suspension, which took place at 4:37 PM ET, was initiated to ensure a fair and orderly market during a critical period of information dissemination. CIRO’s role as a self-regulatory body underscores the importance of transparency and market integrity, particularly for publicly-listed firms like Kraken.
Following the halt, trading for Kraken Robotics is set to resume on June 18, 2025, at 8:00 AM ET. This resumption is expected to rejuvenate market activity and enhance liquidity for the company, allowing stakeholders to engage more actively as Kraken continues to innovate and expand within the technology sector focused on robotics and autonomous systems.
