Gorilla Technology Group CEO Addresses Market Concerns and Reaffirms Growth Strategy
London, UK – January 13, 2025 – Gorilla Technology Group Inc. (NASDAQ: GRRR) CEO, Jay Chandan, issued a comprehensive statement today addressing recent market volatility and shareholder concerns regarding the company’s stock performance. Chandan emphasized Gorilla’s robust financial position, highlighted key strategic priorities, and refuted certain market misinterpretations that he believes have contributed to the stock’s fluctuation. He reiterated the company’s commitment to delivering sustainable growth, expanding its project pipeline, and creating long-term value for shareholders.
Chandan began by acknowledging shareholder concerns and emphasizing the company’s dedication to transparency and delivering results. He detailed the recent increase in the share buyback program from $6 million to $10 million, a move approved by the board of directors. This decision, Chandan explained, reflects the board’s confidence in the company’s intrinsic value and long-term potential, which they believe is currently undervalued by the market. He further clarified that while $3.8 million has already been utilized for share repurchases in private transactions, further buybacks and insider purchases have been restricted due to securities law regulations related to material non-public information. The company intends to expand the buyback program to include open-market purchases following the release of its 2024 fiscal earnings, at which point they expect to be able to disclose all pertinent information, including the status of project wins and bids.
Addressing specific market misconceptions, Chandan clarified the recent increase in outstanding shares, stating that the conversion of preferred shares and exercise of warrants were related to previously disclosed financing arrangements and do not represent new equity issuance or dilution. He emphasized that these actions were at the discretion of the security holders and bolstered the company’s cash position to $47 million, facilitating the financing of new projects without dilutive transactions. Chandan also refuted claims that Gorilla is overly reliant on a single contract, highlighting the significant growth of their project pipeline and the securing of multiple new contracts since the pivotal MENA project. He underscored that the MENA project served as a demonstration of Gorilla’s capability to manage large-scale projects and has paved the way for further opportunities.
Further addressing misinformation, Chandan challenged an article published on Seeking Alpha that questioned Gorilla’s cash flow conversion. He asserted that the article relied on incomplete data from the first half of 2024, failing to account for the substantial cash inflow received in July related to the MENA project. He affirmed that Gorilla continues to meet or exceed project timelines and expects revenue and cash payments to align with internal projections. With over $30 million in outstanding invoices to government customers and an anticipated $50 million in payments by the end of the first quarter of 2025, Chandan expressed confidence in the company’s financial outlook. Additionally, he reiterated the company’s commitment to combating market manipulation and continuing to cooperate with the SEC in their investigation.
Chandan proceeded to showcase Gorilla’s growth strategy, highlighting several recent milestones, including a consortium with NC Digy, Smart Cities, and AECOM to develop an AI-powered smart city in Santa Marta, and two significant AI contract wins in Taiwan. He emphasized the company’s growing backlog of $93 million (excluding anticipated future wins) and a robust pipeline exceeding $2 billion in project opportunities spanning multiple years. This strong foundation, according to Chandan, positions Gorilla for sustained growth throughout 2025 and into 2026.
In response to shareholder inquiries, Chandan provided updates on two key projects. Regarding the $430 million Southeast Asia contract, he explained that negotiations with governments require time and confidentiality, assuring investors that discussions remain on track and updates will be provided upon finalization. Concerning the Seattle office and U.S. contracts, he confirmed the progress of the significant contract mentioned in the December webinar and reiterated the need for confidentiality during negotiations. He expressed optimism about the outcome and highlighted the Seattle office as a strategic move to expand Gorilla’s presence in the U.S. market.
Concluding his address, Chandan reinforced Gorilla’s commitment to transparency, accountability, and delivering on its promises to shareholders, viewing them as partners in the company’s mission. He expressed confidence in the company’s ability to navigate current market challenges and achieve long-term success. He emphasized that the company’s focus remains on executing contracts, fulfilling commitments, and building a strong foundation for future growth, while continuing to prioritize transparency and accountability to its shareholders.
Gorilla Technology Group Inc. is a global provider of AI-driven solutions in security intelligence, network intelligence, business intelligence, and IoT technology. Headquartered in London, the company offers a wide range of solutions across various sectors, including government, manufacturing, telecom, retail, transportation, healthcare, and education. Their expertise lies in revolutionizing urban operations through AI-powered technologies such as intelligent video surveillance, facial recognition, license plate recognition, edge computing, and advanced cybersecurity. These technologies empower smart cities to enhance efficiency, safety, and cybersecurity, ultimately improving the quality of life for residents.
The company’s forward-looking statements are subject to risks and uncertainties, and investors are cautioned not to place undue reliance on these statements. Actual results may differ materially from expectations due to factors beyond Gorilla’s control. The company undertakes no obligation to update forward-looking statements except as required by law. For further information on Gorilla Technology Group Inc., please visit their website at Gorilla-Technology.com. Investor inquiries can be directed to Dave Gentry at RedChip Companies, Inc. via email at [email protected] or by phone at 1-407-644-4256. This announcement is the sole responsibility of the issuer.