iPower, which formed in April 2018, trades under the symbol of IPW.
Bookrunners for the deal are investment bankers Roth Capital Partners of Newport Beach, D.A. Davidson & Co. of Great Falls, Mont., and Tiger Brokers, a Beijing-based online brokerage that caters to Chinese investors.
iPower recently disclosed details on a dispute with Irvine-based investment banking firm Boustead Securities Ltd., following termination of an agreement with Boustead, according to an amended prospectus filed with the Securities and Exchange Commission.
The dispute could lead to litigation, according to the May 5 prospectus.
iPower Chief Executive Chenlong Tan and Dan McClory, Boustead’s head of equity capital markets, have declined to comment.
iPower booked profits of $3.3 million on sales of $66.1 million in 2020.
The company said it is one of the largest online hydroponic equipment suppliers in the U.S., selling more than 22,000 different items on its retail website, Zenhydro.com. The products are used to grow vegetables, fruits, flowers and cannabis. Orders are fulfilled from two fulfillment centers totaling about 72,000 square feet of warehouse space in Southern California.
iPower sells its products through third-party distribution channels including Amazon, eBay and Walmart. Roughly 75% of iPower’s sales are generated over these three platforms, with a quarter coming from Zenhydro.com
Its private label products, marketed under the iPower and Simple Deluxe brands, include items such as heating, ventilation and air conditioning exhaust blowers, grow light systems and trimming machines.
For reprint and licensing requests for this article, CLICK HERE.