Gorilla Technology Group Inc (NASDAQ:GRRR) shares are trading lower by 16.5% to $1.19 Wednesday afternoon after the company announced a $25 million registered direct offering of convertible preferred stock.

Gorilla says the company intends to use the net proceeds from the offering for working capital needs.

Cantor Fitzgerald & Co. and A.G.P./Alliance Global Partners are acting as co-lead placement agents for the offering.

The closing of the offering is expected to occur on or about September 22, subject to the satisfaction of customary closing conditions.

According to data from Benzinga Pro, GRRR has a 52-week high of $12.45 and a 52-week low of $1.03.