Gorilla Technology Group Reinforces Growth Trajectory and Addresses Market Concerns
London, UK – January 13, 2025 – Gorilla Technology Group Inc. (NASDAQ: GRRR) CEO, Jay Chandan, addressed recent market volatility and shareholder concerns in a comprehensive statement released today. He emphasized the company’s robust financial health, strategic growth initiatives, and commitment to transparency, aiming to reassure investors of Gorilla’s long-term value proposition. Chandan highlighted the company’s proactive measures to address market misinterpretations and outlined key milestones achieved in recent months.
Chandan commenced his address by acknowledging shareholder concerns and reaffirming the company’s commitment to delivering strong results. He announced an increase in the share buyback program from $6 million to $10 million, underscoring management’s belief in the company’s intrinsic value and growth potential. While $3.8 million has already been deployed in private share repurchases, Chandan explained that securities law restrictions related to material non-public information have limited further private transactions and insider purchases. The company intends to initiate open-market buybacks after the release of its 2024 fiscal earnings, anticipating greater transparency to enable these activities.
Addressing market misconceptions, Chandan clarified the recent increase in outstanding shares to 18,464,651. He emphasized that this resulted from previously disclosed conversions of preferred shares and exercises of warrants related to 2023-2024 financing agreements, not from new equity issuance. These actions, he noted, have strengthened the company’s cash position to $47 million, facilitating further investments without dilutive transactions. Furthermore, Chandan refuted claims of overreliance on a single client, highlighting the diversification of Gorilla’s project pipeline, which exceeds $2 billion and spans multiple sectors and regions. He stressed that the MENA project, while significant, is part of a broader portfolio of contracts and active negotiations.
Chandan also addressed concerns regarding cash flow conversion, attributing recent criticism to incomplete information. He pointed to the influx of cash from the MENA project in July 2024, not fully reflected in publicly available data. With over $30 million in outstanding invoices to government customers and an expected $50 million in payments by Q1 2025, Chandan affirmed the company’s strong liquidity position. He further emphasized Gorilla’s commitment to transitioning to quarterly reporting in 2025, enhancing transparency and providing more regular updates on financial performance. The company is actively engaging with the SEC regarding potential market manipulation and continues to press for a thorough investigation.
Chandan emphasized several key strategic developments, demonstrating Gorilla’s momentum in the market. He highlighted a recent MoU with NC Digy, Smart Cities, and AECOM to transform Santa Marta into an AI-powered smart city, showcasing the company’s innovative solutions for urban development. He also noted recent AI contract wins in Taiwan and the ongoing negotiations for a $430 million contract in Southeast Asia, underscoring Gorilla’s expanding reach across various regions. These developments, coupled with a $93 million backlog entering 2025 (excluding anticipated future wins) and a robust pipeline, underscore the company’s growth trajectory and commitment to long-term value creation.
Finally, Chandan addressed additional shareholder inquiries. He acknowledged the confidential nature of government contract negotiations, particularly regarding the $430 million Southeast Asia contract and a significant U.S. contract under discussion. He assured investors that these negotiations are progressing well and updates will be provided as appropriate. Chandan emphasized the strategic importance of the new Seattle office in expanding Gorilla’s U.S. market presence and reiterated the company’s commitment to pursuing further opportunities in this key region. He concluded by reinforcing Gorilla’s dedication to transparency, accountability, and delivering on its promises, emphasizing the shared journey with its investors towards mutual success. The company remains confident in its ability to execute its strategy and deliver sustainable growth in 2025 and beyond.