LEHI, Utah - Owlet, Inc. (NYSE: OWLT), known for its smart infant monitoring technology, has announced a private placement sale of its Series B convertible preferred stock and related warrants, securing approximately $9 million in gross proceeds, excluding offering expenses.
The transaction is expected to conclude on Tuesday, February 28, 2024, pending customary closing conditions.
The newly issued Series B preferred stock, convertible into around 1.2 million shares of common stock, comes with an additional incentive for investors: warrants to purchase 150% of the shares of common stock at an exercise price of $7.7125, valid for five years post-issuance. This price represents a 25% premium over the closing market price on February 23, 2024.
Owlet's CEO, Kurt Workman, highlighted the infusion of capital as a reinforcement of the company's growth trajectory, following recent FDA clearances for two new medical devices. Workman expressed gratitude towards the investors for their support and shared the company's commitment to achieving profitability.
The completion of this financial maneuver is poised to bolster Owlet's cash reserves, which stood over $16 million at the year's end, and aid in the global commercialization of its newly approved medical devices.
The securities offered in this private placement and the common stock issuable upon conversion or exercise of the preferred stock or warrants are not registered under the Securities Act of 1933 and cannot be resold without registration or exemption. Owlet has committed to filing a registration statement with the SEC to facilitate the resale of these shares.
The information in this article is based on a press release statement.
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