Key points:
- ToughBuilt (TBLT) stock price soared 130% after raising $6 million.
- Investors cheered the capital raise despite diluting current shareholders.
- As a result, TBLT could be the most undervalued NASDAQ stock.
- Read on to find out.
The Toughbuilt Industries Inc (NASDAQ: TBLT) stock price rallied 130% after announcing that it had closed its previously announced public offering to raise $6 million by offering 3,157,895 shares of its common stock and an equal number of pre-funded warrants to purchase its common stock.
Usually, when a company announces that it has closed a public offering of its stock, which significantly dilutes existing shareholders, the result is a selloff, not a rally in the firm’s stock price. However, this was not the case for ToughBuilt.
Also read: How To Trade Forex During A Recession.
Established in 2012, ToughBuilt Industries manufacturers workbenches, Jobsite tables, innovative shell knee pads, and belt-on tool organisers for contractors and other workers in the construction industry.
The company operates in the booming construction industry and has built a name for itself as a reliable manufacturer of the items mentioned above. ToughBuilt will use the funds raised today for general corporate purposes, working capital and to repay existing warrants.
Investors were happy that the company now has some operational cash flow from the funds raised today, which will secure its operations for the foreseeable future. Moreover, investors seem to have a lot of confidence in ToughBuilt’s future success, which is why they happily supported its latest capital raise.
ToughBuilt shares have fallen 94.3% in 2022 amid a challenging operating environment, but there is hope that its shares shall recover soon. The firm did a 1-150 stock split in April, but this was not enough to stop the massive decline in its share price.
The company also reported that its revenues during the December 31, 2021 quarter were up 105% to $24.6 million compared to Q4 2020 when it generated $12 million. Therefore, a company with revenues exceeding $24 million is worth more than a mere $4.38 million. As a result, this could be one of the most undervalued companies today.
*This is not investment advice. Always do your due diligence before making investment decisions.
The Toughbuilt stock price.

The ToughBuilt stock price rallied 131% to trade at $4.09, rising from Thursday’s closing price of $1.77.