TOMI Environmental Solutions, Inc. (NASDAQ: TOMZ) filed a $50 million universal shelf registration statement on Form S‑3 and simultaneously announced a $20 million equity line of credit (ELOC) with Hudson Global Ventures, LLC. The ELOC allows the company to issue up to $20 million of common stock over a 24‑month period, providing a ready source of capital for operational and strategic initiatives.
The filing follows a strong Q3 2025 earnings report in which TOMI posted revenue of $2.0 million, a 95 % sequential increase over Q2 2025, and a gross profit margin of 61 %. However, the quarter also saw a year‑over‑year revenue decline to $2.012 million from $2.542 million in Q3 2024, and a net loss of $450,000. The company’s cash used in operations and net loss raise substantial doubt about its ability to continue as a going concern within one year.
The new financing package is designed to address those liquidity pressures. By having a shelf registration in place, TOMI can quickly raise capital when market opportunities arise or cash‑flow needs emerge, thereby reducing the risk of a liquidity crunch that has historically contributed to its going‑concern concerns. The $20 million ELOC provides a flexible, low‑cost source of equity that can be drawn upon as needed without the need for a full public offering.
CEO Dr. Halden Shane emphasized that the line of credit “provides added financial flexibility to support our growth.” He noted that the financing will accelerate investments in innovation, manufacturing efficiency, and international distribution—areas that are critical to converting the company’s sizable sales pipeline into recurring revenue. The company also highlighted the expanding adoption of its SteraMist technology, which underpins its Binary Ionization Technology (BIT) platform.
Strategically, TOMI plans to use the capital to expand its BIT product line, scale manufacturing capacity, and broaden its global distribution network. These initiatives are intended to capture growing demand for disinfection and decontamination solutions across hospitals, laboratories, food processing facilities, and other commercial sectors. The financing also supports the company’s partnership with Bancroft Capital for strategic advisory and placement arrangements, further strengthening its capital structure.
Overall, the $50 million shelf registration and $20 million ELOC give TOMI a robust financial cushion that will help it navigate current cash‑flow challenges, fund growth initiatives, and reinforce investor confidence in its ability to sustain operations and pursue expansion opportunities.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.