Art’s Way Manufacturing receives minority investment from Alumni Capital

Art’s Way Manufacturing (NASDAQ:ARTW) received a minority investment from Alumni Capital.

The agreement includes purchases of shares in at Art’s Way’s discretion for a total amount of up to $3 million.

Proceeds are expected to be used for general business expenses, working capital, asset acquisitions, businesses or operations.

Art’s Way’s Board of Directors and current corporate structure will remain the same, including CEO David King. McConnell Legacy Investments will continue to be the largest shareholder in the equipment manufacturing business.

King said, “This investment will support our efforts to bring in more equipment needed to improve plant efficiency and product quality, such as a CNC breaking press, finished product elevator and high plasma definition. Adding additional staff to bring innovative new products to market faster will also be a priority. The Alumni Capital investment will significantly accelerate these efforts.

In other news, ARTW reported 3.9% year-over-year growth in consolidated revenue to $5.61M for the first quarter of FY22. Growth was led by 18.9% growth. % of sales of agricultural products.

The consolidated net loss was $406,000 compared to a net loss of $315,000 for the same period of fiscal 2021.

Shares slipped 17.06% following the announcement of the results