Innovative Eyewear, Inc. Announces Closing of $2.5 Million Registered Direct Offering Priced At-the-Market Under Nasdaq Rules

Rhea-AI Summary

Innovative Eyewear, developer of smart eyewear, has closed a $2.5 million registered direct offering under Nasdaq rules, issuing 5,263,161 shares at $0.475 each. Concurrently, the company issued unregistered warrants to purchase an equal number of shares at the same price. These warrants are exercisable immediately and expire in five years. Gross proceeds from the offering were approximately $2.5 million, intended for working capital and general corporate purposes. H.C. Wainwright & Co. acted as the exclusive placement agent. The offering was conducted under a shelf registration statement filed with the SEC.

Positive

• Raised $2.5 million in gross proceeds.
• Shares issued at $0.475 each, matching current market price.
• Funds intended for working capital and corporate purposes.
• H.C. Wainwright & Co. as exclusive placement agent.

Negative

• Potential dilution with issuance of 5,263,161 new shares.
• Additional dilution risk from unregistered warrants for another 5,263,161 shares.
• Gross proceeds do not account for placement agent fees and offering expenses.

Insights

Financial Analyst

The recent direct offering by Innovative Eyewear, Inc., which raised $2.5 million through the sale of common stock and issuance of unregistered warrants, has several financial implications for stakeholders. Firstly, this infusion of capital is intended for working capital and general corporate purposes. An increase in working capital typically aids in improving the company's short-term liquidity and operational efficiency. However, it also results in share dilution, as 5,263,161 new shares were added to the market at a low purchase price of $0.475 per share, which could potentially depress the stock price in the short term.

Investors should also consider the implications of the unregistered warrants, which offer the right to purchase additional shares at the same price over the next five years. If exercised, this could further dilute existing shareholders' equity but provide additional capital for future growth. The involvement of H.C. Wainwright & Co. as the exclusive placement agent is a positive indicator of institutional confidence in the company's potential.

Overall, the net proceeds are relatively modest, especially when compared to larger market players, but they might be significant enough for a smaller company like Innovative Eyewear. The long-term effect of this offering will largely depend on how efficiently the company utilizes the capital to drive growth and improve financial health.

Market Research Analyst

The direct offering suggests a strategic move by Innovative Eyewear to increase liquidity and fund ongoing operations. For retail investors, understanding the market context is crucial. The eyewear market, particularly the smart eyewear segment, is evolving with technological advancements and increasing consumer adoption.

Though raising funds through equity can be seen as a sign of financial health, it may also indicate that the company is exploring options beyond traditional financing, which might not be readily available or favorable. The low price per share could reflect the current market's perception of the company’s valuation, which may be affected by competition and market dynamics.

Looking forward, how Innovative Eyewear leverages this capital influx to innovate and expand its market share will be pivotal. Investors should keep an eye on subsequent financial disclosures and performance metrics to gauge the effectiveness of this fundraising effort.

MIAMI, May 29, 2024 /PRNewswire/ -- Innovative Eyewear, Inc. ("Innovative Eyewear" or the "Company") (Nasdaq: LUCY; LUCYW), the developer and seller of smart eyewear, today announced the closing of its previously announced registered direct offering priced at-the-market under Nasdaq rules for the issuance and sale of 5,263,161 shares of its common stock at a purchase price per share of $0.475. Additionally, in a concurrent private placement, Innovative Eyewear has also issued unregistered warrants to purchase up to 5,263,161 shares of common stock at an exercise price of $0.475 per share. The unregistered warrants are exercisable immediately upon issuance and will expire five (5) years from the date of issuance.

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

The gross proceeds to Innovative Eyewear from the offering were approximately $2.5 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 were 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 were 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 was filed with the SEC and is 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, 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 were 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 intended use of proceeds from the offering. 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 did Innovative Eyewear announce on May 29, 2024?

Innovative Eyewear announced the closing of a $2.5 million registered direct offering.

How much did Innovative Eyewear raise in its recent offering?

Innovative Eyewear raised approximately $2.5 million in gross proceeds.

What is the stock symbol for Innovative Eyewear?

The stock symbol for Innovative Eyewear is LUCY.

At what price were the shares issued in Innovative Eyewear's recent offering?

The shares were issued at $0.475 each.

What are the intended uses for the funds raised by Innovative Eyewear?

The funds will be used for working capital and general corporate purposes.

Who acted as the placement agent for Innovative Eyewear's offering?

H.C. Wainwright & Co. acted as the exclusive placement agent.

What is the duration of the warrants issued by Innovative Eyewear?

The warrants will expire five years from the date of issuance.

How many shares were issued in Innovative Eyewear's offering?

5,263,161 shares were issued in the offering.