Unique Fabricating raises $4.4 million, amends forbearance agreement

Auburn Hills, MI – Unique Fabricating, Inc. announced that it has raised approximately $4.4 million through a private offering and sale of public equity of 1,954,000 shares of common stock at a price of $2.25 per share in an offering exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). Taglich Brothers, Inc. acted as placement agent for the offering. The Company received net proceeds of $4,044,780 after payment of selling commissions and Taglich’s expenses. Taglich also received warrants to purchase 156,320 shares of common stock, exercisable for five years at a price per share of $3.12. The Company intends to utilize the net proceeds for general corporate purposes and initially to reduce borrowings under its revolving credit facility, which subject to availability and compliance with the terms of the revolving line of credit, as amended, including by the Forbearance Agreement, may be reborrowed by the Company.

“This transaction strengthens our balance sheet and reduces our debt levels, as we continue to navigate the industry wide supply chain and pandemic-related challenges impacting our customers and our company,” said Doug Cain, President and Chief Executive Officer. “We continue to appreciate the strong support from our investors and lenders, who have worked collaboratively with us, demonstrating that they share management’s positive outlook when the chip shortage abates. We will continue to work with our bank syndicate over the next several months to secure a mutually beneficial long-term agreement.”

The Company is also simultaneously amending its Forbearance Agreement with its Lenders. The Company has entered into the Second Amendment to the Forbearance Agreement that, among other things, revises the financial covenants contained within the Forbearance Agreement. The revised financial covenants are reflective of the anticipated impact of the ongoing semiconductor shortage and its impact on demand for the Company’s products from its automotive customers.