ToughBuilt Industries $TBLT stock rose on July 29, 2022, as news circulated that a prominent institutional investor had increased its position in the stock.
The SEC filing, as is customary, hides the name of the actual institutional investor, as seen by the absence of the investing entity as seen on the signing page:
We know that H.C. Wainright was the entity hired to facilitate the transaction. Below is the public information and what we know.
On July 25, 2022, ToughBuilt Industries “announced that it has entered into definitive agreements with institutional investors for the issuance and sale of 4,000,000 shares of common stock and preferred investment options to purchase up to 8,000,000 shares of common stock at an offering price of $5.00 per share and accompanying preferred investment options, in a private placement priced at a premium to market under Nasdaq rules. Each share of common stock was sold in the offering together with a series A preferred investment option to purchase one share of common stock that is exercisable immediately for a term of three years at an exercise price of $5.00 per share and a series B preferred investment option to purchase one share of common stock that is exercisable immediately for a term of two years at an exercise price of $5.00 per share. The private placement is expected to close on or about July 27, 2022, subject to the satisfaction of customary closing conditions. H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.”
The Institutional Investors Could Be Blackrock
Did Blackrock take a significant position in $TBLT stock negotiated at $5.00 per share? Check out the top institutional investors in ToughBuilt Industries:
Blackrock is seriously unrepresented in this company. Usually, Blackrock and Vanguard are in the #1 and #2 positions. It could also be State Street increasing its position in $TBLT stock. The institutional investor wishes to remain anonymous, so it’s impossible to know until SEC filings for institutional investment firms are made public 3 to 6 months from now.
I don’t think it’s a coincidence that just two days after this large institutional investor position was initiated at $5.00 per share, it was released to the public that ToughBuilt Industries will have 35 products in Ace Hardware stores across the country.
ToughBuilt Industries Launches 35 Products in 5,500 Ace Hardware Locations
On July 28, 2022, ToughBuilt Industries, Inc. announced that the company had entered into an agreement with Ace Hardware USA and International (“Ace”) to sell 35 ToughBuilt products.
According to the terms of the agreement, Ace will distribute ToughBuilt’s products utilizing Ace’s 15 regional service centers to reach 5,500 individual Ace stores across the U.S. This agreement saw ToughBuilt’s products on Ace shelves starting in the second quarter of 2022. Among the 35 of the company’s products that Ace will be selling are some of ToughBuilt’s most popular items, including Tool Belts and Suspenders, Tool Belt Sets, Clip Tech Pouches, Clip Tech Accessories, Bags, Knee Pads, Sawhorses, and Cutting Tools.
Michael Panosian, ToughBuilt CEO, commented, “We are thrilled with the opportunity to expand our market coverage while simultaneously driving revenue growth to a community-centric business like Ace. Our SKU expansion efforts continue to strengthen our presence in the U.S., and our agreement with Ace signifies another milestone step toward our overall product and sales channel expansion strategy. We look forward to further developing our cooperation with Ace into the future.”
Is Ace Hardware just the first step towards ToughBuilt Industries selling products in Home Depot and Lowes?
The largest shareholders in Home Depot and Lowes are Blackrock and Vanguard.
ToughBuilt Industries Reports $3.56 Million in Q2 2022 Sales Through Amazon
On July 11, 2022, ToughBuilt Industries, Inc. announced that the company’s gross sales for the quarter ended June 30, 2022, through Amazon.com were $3.56 million. This represents a 20% increase from the same quarter in 2021. Sales for the first half of 2022 increased by 24% to approximately $7.01 million compared to $5.31 million for the first half of 2021.
Michael Panosian, Chief Executive Officer of ToughBuilt, commented, “The Company’s growth remains significant despite unfavorable market conditions. Our sales through Amazon continue to be a driving force for ToughBuilt’s overall revenue growth. We look forward to expanding upon our product portfolio and revenue success.”
So we see Amazon as a trial run to determine the popularity of the brand “Tough Built” in digital stores before moving to the more expensive brick-and-mortar stores. The brand seems to have passed the first test on Amazon, so now they will try sales in Ace Hardware. If Ace Hardware sales post as good as numbers as Amazon, then I expect its products to be added to Home Depot and Lowes.
What we could be seeing in these institutional investors’ private placements are bets on the future success of ToughBuilt products and the expansion into more retail hardware stores.
📺 ToughBuilt Reload Utility Knife + 2 Blade Mags
📈 ToughBuilt Industries $TBLT Chart
As of July 31, 2022, the chart of $TBLT is in a downtrend but may be a turnaround candidate. The stock is a high-risk, high-reward play.