Modular-building startup Boxabl plans to go public on the NASDAQ.
The company has partnered with a NASDAQ-listed special purpose acquisition company (SPAC), which means its shares will be listed on the stock exchange upon completion of the deal.
Boxabl says is has more than 50,000 private investors, having raised $200 million since its start four years ago. A public listing would help investors trade their shares and give the company access to a broader range of shareholders.
The company, which manufactures foldable and shippable modular homes, has expanded its tiny 19-by-19-foot Casita to offer larger Casitas. It has three factories in Nevada and recently received approval to operate in Colorado.
“The proposed transaction represents a significant step forward in Boxabl’s mission to revolutionize affordable, sustainable housing,” the company stated.
Like all companies seeking a public listing, Boxabl released its offering circular, detailing the risks associated with purchasing its shares. The company has never posted a profit, the documents state, and posted a $12 million loss in its circular’s last reported quarter (compared to $6 million a year earlier).
“The company has operated at a loss since inception and historically relied on contributions from its founders and proceeds from its offerings to meet its growth needs,” the statement reads.
The company underscored that as an early-stage manufacturing company, it needs to spend at a loss in order to develop its infrastructure and build out its facilities.
It also warns of a very 2025 concern – bad online reviews could tank the business.
“As a company raising money from the crowd, Boxabl’s funding is highly dependent upon investors who get information from a wide variety of sources that rely on user-generated content,” the statement says. “Boxable and its management have previously been the subject of negative postings, including misinformation and false allegations, made on multiple social platforms … negative publicity may have an adverse impact on the company, its fundraising, its reputation, and has the potential to distract management’s attention.”
