Innovative Eyewear, Inc. Announces $1.025 Million Registered Direct Offering Priced At-the-Market Under Nasdaq Rules

Rhea-AI Summary

Innovative Eyewear, Inc. announced a registered direct offering of 4,200,822 shares of its common stock at a purchase price of $0.244 per share, along with unregistered warrants to purchase the same number of shares. The offering is expected to generate roughly $1.025 million in gross proceeds for the company. The net proceeds will be used for working capital and general corporate purposes. The offering is set to close around May 1, 2024, pending customary closing conditions.

Positive

• The company is raising significant funds through the offering, which can improve its financial standing and support its operations.

• The use of proceeds for working capital and general corporate purposes indicates a strategic approach to strengthening the company's position in the market.

Negative

• The issuance of additional shares through the offering may lead to dilution for existing shareholders, impacting the stock's value.

• The unregistered warrants and shares may not be freely resold in the United States without proper registration, potentially limiting their liquidity.

 MIAMI, April 29, 2024 /PRNewswire/ -- Innovative Eyewear, Inc. ("Innovative Eyewear" or the "Company") (Nasdaq: LUCY; LUCYW), the developer and seller of smart eyewear, today announced that it has entered into a definitive agreement for the issuance and sale of 4,200,822 shares of its common stock at a purchase price per share of $0.244 in a registered direct offering priced at-the-market under Nasdaq rules. Additionally, in a concurrent private placement, Innovative Eyewear has also agreed to issue unregistered warrants to purchase up to 4,200,822 shares of common stock at an exercise price of $0.244 per share. The unregistered warrants will be exercisable beginning on the effective date of stockholder approval of the issuance of the shares issuable upon exercise of the warrants and will expire five years from the date of stockholder approval. The offering is expected to close on or about May 1, 2024, subject to the satisfaction of customary closing conditions.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

The gross proceeds to Innovative Eyewear from the offering are expected to be approximately $1.025 million, before deducting the placement agent's fees and other offering expenses. The Company currently intends to use the net proceeds from the offering for working capital and general corporate purposes.

The shares of common stock offered in the registered direct offering (but excluding the unregistered warrants or the shares of common stock underlying such unregistered warrants) described above are being offered pursuant to a "shelf" registration statement on Form S-3 (Registration No. 333-276938), including a base prospectus, previously filed with the Securities and Exchange Commission ("SEC") on February 7, 2024, and declared effective by the SEC on March 29, 2024. The offering of the shares of common stock are being made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and an accompanying base prospectus relating to, and describing the terms of, the registered direct offering will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov. Electronic copies of the prospectus supplement and accompanying base prospectus relating to the registered direct offering, when available, may also be obtained from H.C. Wainwright & Co., LLC at 430 Park Ave., New York, New York 10022, by telephone at (212) 856-5711, or by email at placements@hcwco.com.

The offer and sale of the unregistered warrants are being made in a transaction not involving a public offering and have not been registered under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act") and/or Rule 506(b) of Regulation D promulgated thereunder and, along with the shares of common stock underlying such unregistered warrants, have not been registered under the Securities Act or applicable state securities laws. Accordingly, the unregistered warrants and the underlying shares of common stock may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Innovative Eyewear, Inc. 
Innovative Eyewear is a developer of cutting-edge ChatGPT enabled smart eyewear, under the Lucyd®, Nautica®, Eddie Bauer® and Reebok® brands. True to our mission to Upgrade Your Eyewear®, our Bluetooth audio glasses allow users to stay safely and ergonomically connected to their digital lives and are offered in hundreds of frame and lens combinations to meet the needs of the optical market. To learn more and explore our continuously evolving collection of smart eyewear, please visit www.lucyd.co.

Forward Looking Statements

This press release contains certain forward-looking statements, including those relating to the completion of the offering, the satisfaction of customary closing conditions related to the offering and the intended use of proceeds therefrom and receipt of stockholder approval. Forward-looking statements are based on the Company's current expectations and assumptions. The Private Securities Litigation Reform Act of 1995 provides a safe-harbor for forward-looking statements. These statements may be identified by the use of forward-looking expressions, including, but not limited to, "anticipate," "believe," "continue," "estimate," "expect," "future," "intend," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 10-K under the caption "Risk Factors."

Investor Relations Contacts:

Innovative Eyewear, Inc.
Scott Powell
Skyline Corporate Communications Group, LLC
Office: +1 (646) 893-5835
Email: scott@skylineccg.com

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SOURCE Innovative Eyewear, Inc.

FAQ

What is the purchase price per share in the registered direct offering by Innovative Eyewear, Inc.?

The purchase price per share in the registered direct offering is $0.244.

How many shares are being offered in the registered direct offering by Innovative Eyewear, Inc.?

Innovative Eyewear, Inc. is offering 4,200,822 shares of its common stock in the registered direct offering.

What is the expected gross proceeds from the offering by Innovative Eyewear, Inc.?

The company expects the gross proceeds from the offering to be approximately $1.025 million.

What will Innovative Eyewear, Inc. use the net proceeds for from the offering?

The company intends to use the net proceeds for working capital and general corporate purposes.

Who is acting as the exclusive placement agent for the offering by Innovative Eyewear, Inc.?

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering by Innovative Eyewear, Inc.