Stran Promotional Solutions (asi/337725), a Top 40 promotional products distributor, raised about $42.4 million through an initial public offering on the NASDAQ and subsequent private placement of common stock and warrants.

During the IPO in November, Quincy, MA-based Stran Promo raised $20.7 million. During a recent private placement to institutional investors, the company raised an additional $21.7 million.

Andy Shape (left) is president/CEO of Stran Promotional Solutions; Howie Turkenkopf is vice president of marketing.

Stran plans to use the net proceeds to fund acquisitions and partnerships, as well as investments in technology. Additionally, the company plans to expand corporate infrastructure, its sales team and marketing efforts. Stran will also use the proceeds as general working capital and for administrative purposes.

Meanwhile, the newly public traded company has released its third quarter 2021 financial performance results. Stran shared that revenue in Q3 increased nearly 31% to $10.9 million compared to the same three-month span the prior year.

Net income tallied $700,000, up from a $200,000 loss in in Q3 2020. Operating income reached $1 million, up from $100,000 the prior year. Gross margin was 34%, up from 25.9%.

A 48% year-over-year revenue increase in 2020 powered Stran into Counselor’s Top 40 for the first time in 2021. The tally of $46.9 million in North American promotional product revenue was good enough to rank the firm 32nd on the list of promo’s largest distributors.

While Stran did well with PPE in 2020, the category accounted for less than 10% of its total sales. The revenue surge occurred, in part, because of the execution of an eight-figure campaign tied to the U.S. Census and the acquisition of distributor Wildman Imprints. Strong organic growth also propelled Stran.

***Correction: A previous version of this story incorrectly stated that Stran raised $21.7 million from its IPO. The correct number is $20.7 million.