Sacks Parente Golf, Inc., a maker of putting instruments, golf shafts, golf grips, and other golf-related products, raised $12.8 million by selling 3.2 million shares in an initial public offering.
The shares were priced on August 15 at $4.00 per share, reaching the low end of a proposed range between $4 to $5. The Benchmark Company was the sole book running manager in connection with the offering. The stock is trading under the ticker SPGC.
Based in Camarillo, CA, Sacks Parente Golf was founded by Richard Parente, Steve Sacks, Tim Triplett, and Akinobu Yorihiro.
Parente, in 1980, co-founded Hickory Stick, which was renamed Callaway Golf in 1982, and was the first president of Callaway. In 1993, Parente began a venture as co-owner and president of Goldwin Golf. He also founded Golf Laboratories, an independent testing company that uses robotics for research and development.
Sacks was also a co-founder of Goldwin Golf and held roles in the golf industry across his career at Aserta Sports, Bridgestone Golf, Carbite Golf, Daiwa Golf, Golf Headquarters, Golf Technology Systems, Rife Putters, and Yamaha Golf.
Sacks serves as a director of research and development for putter head development. Parente has transitioned to be a consultant to the company.
Triplett, CEO of Sacks Parente Golf, served as CEO of Nippon Xport Ventures, Inc., the company’s largest stockholder, from 2017 to 2022, where he continues to serve as a director.
Yorihiro, who serves as Sacks Parente Golf’s chief technology officer and legal officer, has been chairman of Nippon Xport Ventures since 2017.
Sacks Parente Golf’s putting instruments are made of steel, aluminum, titanium alloys, carbon fiber, tungsten, and other materials, including its patented magnesium face plate technologies and sold under the SPG brand, but the company reported it intends to explore private label and sell certain components to interested third parties.
Sacks Parente Golf wrote, “Our shaft and putter technology has been shown by The Golf Lab, a Canadian golf research and education provider, to improve players’ ability to make putts, feel of the putter head, stroke, face angle at impact, and consistency for distance control. Our management believes that our proprietary shaft designs can enhance the performance of players’ putters as well as drivers and other golf clubs. Further, our management believes that these innovative designs, along with our proprietary manufacturing techniques, create performance improvements over traditional golf shafts.”
Considering its growth opportunities in shaft technologies, the company, in April 2022, expanded its manufacturing business to include premium golf shafts by opening a new shaft manufacturing facility in St. Joseph, MO. The company intends to manufacture and assemble most, if not all, of products in the United States.
The company also anticipates expansion into golf apparel and other golf-related product lines to enhance its growth. The company further indicated that future expansions could include broadening its offerings through mergers, acquisitions or internal developments of product lines that are complementary to its premium brand.
The company sells its products through resellers, its websites and distributors in the United States, Japan, and South Korea.
In the year ended December 31, sales decreased 5 percent to $190,000. The loss from operations increased to $2.87 million compared to a $294,000 loss a year ago. The increase in its loss from operations was due to decreased gross profit, increased stock-based compensation costs, and increased operating costs. The net loss increased by $3.2 million compared with a loss of $302,000 a year ago.
Proceeds of approximately $12.8 million before deducting underwriting and other expenses will be used for new opportunities and expansion into Asia, to fund marketing and professional tour-related costs, to repay debt, pay accrued compensation, and the remainder to fund manufacturing expansion, and for working capital and general corporate purposes.
Photo courtesy Sacks Parente Golf