Gorilla Technology Group CEO Addresses Market Concerns and Reaffirms Growth Trajectory
London, UK – January 13, 2025 – Gorilla Technology Group Inc. (NASDAQ: GRRR), a global provider of AI-driven solutions, addressed recent market volatility and shareholder concerns in a comprehensive statement issued by CEO Jay Chandan. The statement emphasized the company’s robust financial health, strategic priorities, and commitment to delivering long-term value for its investors. Mr. Chandan directly addressed several market misconceptions and misrepresentations, reaffirming Gorilla’s strong growth prospects and outlining key milestones achieved in 2024.
Shareholder Value and Buyback Program Expansion
Acknowledging shareholder concerns regarding recent stock fluctuations, Mr. Chandan underscored the company’s dedication to delivering results that reflect the intrinsic value of their investments. Gorilla’s board of directors approved an increase in the share buyback program from $6 million to $10 million, reflecting their belief that the current share price undervalues the company’s potential. The CEO explained that while privately negotiated share repurchases have been limited due to securities law restrictions related to material non-public information, the company intends to expand the buyback program to open-market purchases following the release of its 2024 fiscal earnings. This release will provide greater transparency and allow both management and the board to participate in share purchases, further demonstrating their confidence in Gorilla’s future. The move towards quarterly reporting in 2025 is expected to facilitate these activities.
Clarifying Market Misinterpretations and Addressing Speculation
Mr. Chandan directly addressed several circulating narratives that he believes misrepresent Gorilla’s financial position and business prospects. He clarified that the recent increase in outstanding shares resulted from the conversion of preferred shares and the exercise of associated warrants, both previously disclosed to the market. These actions, initiated solely at the discretion of the security holders, did not represent new equity issuance or dilution. Furthermore, the proceeds from the warrant exercises strengthened the company’s cash position to $47 million, providing additional resources for new projects without requiring dilutive financing.
The CEO also refuted claims of over-reliance on a single client, emphasizing the significant growth of Gorilla’s project pipeline and the securing of multiple new contracts since the landmark MENA project. He stressed that the MENA project served as a crucial demonstration of the company’s capabilities in managing large-scale projects and has facilitated further opportunities. Mr. Chandan also challenged a Seeking Alpha article questioning Gorilla’s cash flow conversion, highlighting that the article relied on incomplete data from the first half of 2024 and failed to account for the substantial cash inflow from the MENA project received in July. The company expects to receive over $50 million in payments by the end of Q1 2025, based on outstanding invoices to government customers exceeding $30 million.
Commitment to Transparency and Addressing Market Manipulation
Gorilla Technology Group reiterated its commitment to transparency and open communication with its shareholders. Mr. Chandan acknowledged the ongoing SEC investigation into potential market manipulation and expressed frustration with the perceived lack of progress. The company will continue to provide evidence to the SEC in support of its belief that its stock is being manipulated and actively advocate for regulatory action to protect shareholder interests.
Highlighting Key Milestones and Strategic Partnerships
Mr. Chandan showcased several key milestones and partnerships that underscore Gorilla’s strategic execution and strong momentum entering 2025. These included a memorandum of understanding (MoU) with NC Digy, Smart Cities, and AECOM to transform Santa Marta into an AI-powered smart city, demonstrating Gorilla’s leadership in urban innovation. Further solidifying its position in the AI sector, the company secured two significant contracts in Taiwan at the end of 2024. These achievements, coupled with a growing backlog of $93 million (excluding anticipated future wins) and a robust pipeline exceeding $2 billion in project opportunities, position Gorilla for sustained revenue growth throughout 2025 and into 2026.
Addressing Shareholder Inquiries and Reinforcing Long-Term Vision
In a continued effort to maintain transparency, Mr. Chandan addressed specific shareholder inquiries regarding the status of a $430 million Southeast Asia contract and the progress of a significant U.S. contract mentioned in a December investor webinar. While acknowledging the market’s desire for updates, he emphasized the need for confidentiality during ongoing negotiations with government entities. He assured shareholders that discussions are progressing as expected and that updates will be provided as soon as approvals are secured. The opening of a Seattle office further demonstrates Gorilla’s commitment to expanding its presence in the U.S. market and pursuing additional growth opportunities.
Conclusion: A Path to Shared Success
Concluding his address, Mr. Chandan reaffirmed Gorilla’s commitment to its shareholders, emphasizing their importance as partners in the company’s mission. He reiterated the company’s focus on transparency, accountability, and progress as they navigate the path towards shared success. With a strong financial foundation, a robust project pipeline, and a commitment to delivering cutting-edge AI-driven solutions, Gorilla Technology Group appears well-positioned for continued growth and long-term value creation.