Mar. 20 at 10:06 PM
$ARTL Cluade: This is a primary offering — Artelo itself is raising new capital. Here's what it actually says:
What this offering really is:
Artelo is offering 1,641,587 new shares (or pre-funded warrants) at an assumed price of
$7.31/share (the March 18 close)
That's a ~123% increase in shares outstanding, from 736,127 to 2,377,714
Maximum net proceeds to the company: ~
$10.8 million (after the 8% placement agent fee and ~
$140K in expenses)
Placement agent (Craft Capital Management) also gets warrants for 8% of shares sold, at
$7.31/share
Why this is highly bearish at
$7.64:
The offering price is set at
$7.31 , meaning new investors are being offered shares cheaper than market
Dilution per share to new buyers is
$4.07 (per the prospectus itself), meaning the post-offering book value per share would be ~
$3.24
There is no minimum close — they can raise any amount or nothing
The company had only
$600K cash vs.
$4M+ in current liabilities as of Dec 31, 2025
