ADOMANI, Inc. (NASDAQ: ADOM) Completes Secondary Equity Offering Of $11 Million; Faces Investigation From Harwood Feffer LLP

ADOMANI, Inc. (NASDAQ: ADOM) recently announced the completion of an S-1 registered public offering at $3.00 per Unit of 3,666,667 Units. Each of its Unit comprises of one share of common stock with a warrant to buy 1.5 shares of common stock at the offering price of $4.50. The gross proceeds to the company from the Offering excluding the offering expenses and placement agent fees will be $11.0 million.

The company is a provider of advanced zero-emission and hybrid vehicle drivetrain solutions and purpose-built electric vehicles. Roth Capital Partners is the financial advisor to ADOMANI whereas Boustead Securities, LLC, who is the underwriter of the company’s Regulation A + IPO in June 2017 served as the exclusive placement agent for this particular Offering.

Incidentally, this closing down makes ADOMANI the first Regulation A+ Issuer on NASDAQ agreeing to conduct an S-1 registered secondary offering. The Head of Equity Capital Markets for Boustead Securities, Dan McClory said that ADOMANI has once again shown that it is the leader in pioneering a progression of equity offerings from Regulation A+ and Form 1-A for NASDAQ IPO.

He further said that in the opinion of Boustead Securities this is precisely what is expected by the SEC by enabling developing companies to utilize the JOBS ACT and get access to capital more efficiently. ADOM has managed to raise over $25 million through such public capital markets which are the second-largest amount of gross funding proceeds for an issuer of Regulation A+.

The company intends to use this net proceeds majorly for prepaying its outstanding secured 9% notes payable and working capital and also for other general corporate purposes.

Harwood Feffer LLP To Investigate Claims Against ADOMANI Board

According to recent reports, Harwood Feffer LLP is going to investigate the potential claims against the ADOMANI’s board of directors. The investigation will be conducted to find out whether the board of ADOMANI has cheated upon its shareholders with fiduciary duties. The investigation will also try to find out whether the board of directors has grossly mismanaged the company or/and committed any abuses of control connected to foregoing.

Scott Coper

Scott Coper

Coper graduated from the University of Chicagi with majors in political science and journalism.