In a recent development, Know Labs, Inc (NYSE:KNW), a technology company, announced its entry into an At the Market Offering Agreement (ATM Agreement) with The Benchmark Company, LLC (Benchmark) as sales agent. According to the agreement, Know Labs may intermittently offer and sell its common stock through Benchmark.
The sale of shares will be conducted under Know Labs' existing shelf registration statement, which was filed on December 22, 2023, and subsequently declared effective by the U.S. Securities and Exchange Commission (SEC) on January 5, 2024. This is further detailed in a prospectus supplement dated March 20, 2024.
Know Labs is authorized to sell up to $5 million of its shares under the ATM program. The agreement stipulates that the company will not exceed the number of shares registered, the number of authorized but unissued shares, or the limits set by Form S-3, as per SEC regulations.
Benchmark, acting as the sales agent, is entitled to a commission of up to 3.5% of the gross proceeds from the sale of shares. Additionally, Know Labs will reimburse Benchmark for certain expenses associated with the offering. Both parties have the right to suspend or terminate the offering based on specific conditions.
The offering will end upon the sale of all shares under the ATM Agreement or if the agreement is terminated. Benchmark is committed to executing sales on a commercially reasonable efforts basis, adhering to legal requirements, and the rules of the NYSE American.
This move allows Know Labs to potentially strengthen its financial position by leveraging market conditions to sell shares at prevailing market prices. The company has made it clear that there is no obligation for either Know Labs or Benchmark to sell or buy any shares, suggesting a flexible approach to the offering.
The information presented here is based on an 8K filing with the SEC, offering a factual overview of Know Labs' strategic financial maneuver.
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