Braidy Industries takes step to become public

January 4, 2019

ASHLAND — Braidy Industries has posted an update on its Netcapital fundraising website announcing the company has submitted the necessary filings with the U.S. Securities and Exchange Commission to take the first official step to list as a public company.

The company said in an update that it submitted a draft resale shelf registration statement on Form S-1 to the SEC.

The resale shelf registration statement relates to the possible resale from time to time by certain Braidy stockholders, including by investors purchasing shares in connection with Braidy’s current crowdfunding offering being conducted on the Netcapital portal. The resale shelf registration statement is also intended to facilitate the listing of Braidy’s common stock on the Nasdaq Stock Market, the update stated.

Unlike a traditional initial public offering, any resale of Braidy’s shares would not be underwritten by any investment bank, according to the update.

“Braidy would not receive any proceeds from any sale of its shares by the selling stockholders,” the update said. “The ability of stockholders to commence sales under the resale shelf registration statement would be subject to Braidy publicly filing with the SEC a registration statement on Form S-1 in compliance with the U.S. Securities Act of 1933, and the SEC’s declaring such registration statement effective.”

As an emerging growth company, Braidy submitted its draft registration statement to the SEC on a confidential basis and declined to comment about it.

Braidy is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. For so long as Braidy remains an emerging growth company, it will be permitted and plan to rely on exemptions from certain disclosure requirements that are applicable to other public companies that are not emerging growth

companies, according to the update.

The company says it will build a $1.68 billion aluminum mill in Eastern Kentucky backed in part by state taxpayers. The company earlier this week said it has spent $15.7 million on construction so far.

Braidy Industries says it is on schedule “to meet its anticipated target of bringing the mill to full commercial operation in 2021.”

The Kentucky state Legislature approved a $15 million investment in Braidy Industries in 2017. Company officials have said they expect the mill to create about 600 jobs for the economically depressed Appalachian region where Kentucky, West Virginia and Ohio meet.

Company officials reported updates on the Netcapital website where it also announced it was extending a fundraising deadline by three months for potential investors. More information can be found on the site at https://netcapital.com/companies/braidy.

The aluminum mill is to be located at the EastPark Industrial Center near Ashland.

Follow reporter Fred Pace at Facebook.com/FredPaceHD and via Twitter @FredPaceHD.

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