Castellum, Inc. Announces Proposed Public Offering of Common Stock

We are pleased to announce that Castellum, Inc. (NYSE-American: CTM), a cybersecurity, electronic warfare, and software services company focused on the federal government, has announced a proposed public offering of common stock. The company aims to raise funds to support its working capital and general corporate purposes, aligning with its strategic goals and financial projections.

Our analysis of the proposed offering:

- Offering Details: Castellum, Inc. intends to offer and sell shares of its common stock in a public offering. The company is offering all of the shares of common stock, with Maxim Group LLC acting as the sole placement agent for the offering on a reasonable best-efforts basis.
- Use of Proceeds: The company initially intends to use the net proceeds of the offering for working capital and general corporate purposes. This aligns with Castellum's focus on executing strategic acquisitions in the cybersecurity, MBSE, and information warfare areas, as stated on their website (http://castellumus.com/).
- Financial Performance: In 2023, Castellum's revenue was $45.24 million, an increase of 7.24% compared to the previous year's $42.19 million. Losses were -$17.92 million, 19.4% more than in 2022. The company has also announced higher sequential revenue and positive adjusted EBITDA for Q2 2024, indicating a positive financial trajectory.
- Market Conditions and Investor Sentiment: The offering's pricing and terms reflect the current market conditions and investor sentiment towards Castellum, Inc. The offering price of $0.38 per share is significantly lower than the stock's 52-week high of $1.00 and even lower than its 52-week low of $0.25. This indicates that investors are not willing to pay a premium for the stock, suggesting a bearish sentiment towards the company.

What’s Happening in the Cybersecurity Industry:

CrowdStrike raises $1.2 billion in a big stock sale. The cybersecurity company is using the funds to expand its business and invest in new technologies. The transaction is one of the biggest ever of its kind in the cybersecurity industry and represents an effort by the company to shore up its balance sheet as it deals with increasing competition and a potential credit-rating downgrade.



Darktrace collects $100 million to expand its AI-powered cybersecurity platform. The round — which included outside investors such as Insight Partners, Vitruvian Partners, and Talis Capital — is meant to help the company grow its presence in more markets and develop new AI-driven cybersecurity solutions. In other cybersecurity news, shares in Palo Alto Networks fell 4 percent in premarket trading after the company delivered disappointing profit guidance, and Symantec may close factories in Germany and lay off thousands.

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In conclusion, Castellum, Inc.'s proposed public offering of common stock aligns with the company's strategic goals and financial projections. The offering aims to raise funds for working capital and general corporate purposes, supporting the company's growth and expansion in the cybersecurity, MBSE, and information warfare areas. While the offering's pricing and terms reflect a bearish investor sentiment, the company's positive financial trajectory and the overall growth in the cybersecurity industry suggest potential opportunities for investors.