ToughBuilt Industries Announces $20 Million Private Placement at Above Market Price Under Nasdaq Rules

ToughBuilt Industries, Inc.

LAKE FOREST, Calif., July 25. 12, 2022 (GLOBE NEWSWIRE) — ToughBuilt Industries, Inc. (“ToughBuilt” or the “Company”) (NASDAQ: TBLT; TBLTW), today announced that it has entered into definitive agreements with institutional investors for the issuance and sale of 4,000,000 common shares (or pre-funded warrants instead) and preferred investment options to purchase up to 8,000,000 common shares at an offer price of 5, $00 per share (or pre-funded warrant) and accompanying preferred investment options, in a private placement priced above market under Nasdaq rules. Each common share (or prefunded warrant) was sold under the offering with a Series A preferred investment option to purchase one common share exercisable immediately for a three-year term at a price of exercise of $5.00 per share and a Series B preferred investment option to purchase one common share exercisable immediately for a two-year term at an exercise price of $5.00 per share. The private placement is expected to close on or about July 27, 2022, subject to the satisfaction of customary closing conditions.

HC Wainwright & Co. is acting as the exclusive placement agent for the offering.

Gross proceeds from the offering are expected to be $20 million, before deducting placement agent fees and other offering costs payable by ToughBuilt. The Company intends to use the net proceeds of this offering for general corporate purposes, including working capital.

The securities offered pursuant to the private placement and described above have been offered pursuant to a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the ” Act”) and/or Rule 506(b) of Regulation D promulgated thereunder and have not been registered under the Act or applicable state securities laws. Accordingly, the securities may not be offered or sold in the United States without registration with the Securities and Exchange Commission (the “SEC”) or an applicable exemption from such registration requirements. Pursuant to a registration rights agreement with the investors, the Company has agreed to file one or more registration statements with the SEC covering the resale of the securities sold under this private placement.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, and there will be no sale of such securities in any state or other jurisdiction in which a such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or other jurisdiction.

ABOUT TOUGHBUILT INDUSTRIES, INC.
ToughBuilt is an advanced product designer, manufacturer and marketer with a focus on innovative products. Currently we focus on tools and other accessories for the professional construction and DIY industries. We market and distribute various lines of home improvement and construction products for the DIY and professional markets under the TOUGHBUILT® brand, within the global multi-billion dollar-a-year tool market industry . All of our products are designed by our in-house design team. Since launching product sales in 2013, we have experienced significant annual sales growth. Our current product line comprises three main categories, with several additional categories in various stages of development, consisting of Soft Goods & Kneepads and Sawhorses & Work Products. Our mission is to provide the building and home improvement communities with innovative, superior products resulting in part from informed creativity for our end users while enhancing performance, enhancing well-being and by strengthening brand loyalty. Additional company information is available at: https://www.toughbuilt.com/.

FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements”. Such statements include, but are not limited to, statements regarding the intended use of the proceeds of the Private Placement and statements regarding the expected completion of the Private Placement and the satisfaction of customary closing conditions and may be preceded by the words “a intends to”, “may”, “will”, “plans”, “expects”, “anticipates”, “projects”, “predicts”, “estimates”, “aims”, “believes”, “hopes”, “potential” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the control of the Company and cannot be predicted or quantified and, therefore, the actual results may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties associated with (i) the impact of the global COVID-19 pandemic and government actions on our business, (ii) supply chain disruptions. supply, (iii) market acceptance of our new products, (iv) delays in product introduction in key markets, (v) inability to obtain regulatory approvals for the ability to sell our products in certain markets, (vi) intense industry competition from much larger multinational corporations, (vii) product liability claims, (viii) product malfunctions, (ix) our manufacturing capabilities limitations and our reliance on subcontractors for assistance, (x) our efforts to successfully obtain and maintain intellectual property protection covering our products, which may not be successful, (xi) our d reliance on sole suppliers for certain product components, (xii) the fact that we will need to raise additional capital to meet our business needs in the future and that raising capital may be costly, dilutive or difficult to obtain, (xiii) the fact that we operate in multiple foreign jurisdictions, exposing us to currency exchange rate fluctuations, logistical and communication challenges, the burdens and costs of complying with foreign laws and policies and economic instability in each jurisdiction, (xiv) our satisfaction of the conditions to closing of the Private Placement and our use of the net proceeds thereof, and (xv) market and other conditions. More detailed information about the Company and the risk factors that could affect the making of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s annual report on Form 10-K and its quarterly reports. on Form 10-Q. Investors and security holders are urged to read these materials free of charge on the SEC’s website at http://www.sec.gov. The Company undertakes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise, except as required by law.

Contact with Investor Relations:

KCSA Strategic Communications
David Hanover
ToughBuilt@KCSA.com

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