NextPlat Announces Completion of $6.0M Private Offering of Common Stock Priced Above Market

Rhea-AI Summary

NextPlat Corp (NASDAQ:NXPL, NXPLW) completed a private placement on April 11, 2023, selling 3,428,571 shares of common stock at a total gross proceeds of approximately $6.0 million. The transaction was made with an accredited investor, and NextPlat is required to file a registration statement within 120 days for the resale of these shares. The company operates a global e-commerce platform and focuses on optimizing online sales for businesses in various sectors. The offering aims to enhance the company's financial position, although potential shareholders should note the forthcoming registration requirements.

Positive

• Raised approximately $6.0 million through private placement, enhancing financial capacity.
• Registration for resale of shares may facilitate liquidity and attract further investment.

Negative

• Issuance of new shares may lead to shareholder dilution.
• The requirement to register the shares adds administrative burden and potential delays.

COCONUT GROVE, FL / ACCESSWIRE / April 13, 2023 / NextPlat Corp (NASDAQ:NXPL)(NASDAQ:NXPLW) ("NextPlat" or the "Company"), a global e-commerce provider today announced that on April 11, 2023, the Company completed the previously disclosed private placement transaction pursuant to which the Company sold to an accredited investor (the "Investor") 3,428,571 shares of the Company's common stock, $0.0001 par value per share. Upon the completion of the private placement transaction, NextPlat received gross proceeds of approximately $6.0 million.

In connection with the offering, the Company is required to file an initial registration statement with the Securities and Exchange Commission covering the resale of the shares of common stock issued to the Investor within 120 calendar days of the closing date and to use commercially reasonable efforts to have the registration statement declared effective within 150 days following the closing date.

ArentFox Schiff LLP, Washington, DC, acted as counsel to the Company in connection with the offering.

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

About NextPlat Corp

NextPlat is a global e-commerce platform company created to capitalize on multiple high-growth sectors and markets for physical and digital assets. The Company intends to collaborate with businesses, optimizing their ability to sell their goods online, domestically, and internationally, and enabling customers and partners to optimize their e-commerce presence and revenue. NextPlat currently operates an e-commerce communications services division through its Global Telesat Communications Ltd and Orbital Satcom Corp business units that offer voice, data, tracking, and IoT services to customers worldwide through multiple global storefronts.

Forward-Looking Statements

Certain statements in this release constitute forward-looking statements. These statements include the capabilities and success of the Company's business and any of its products, services or solutions. The words "believe," "forecast," "project," "intend," "expect," "plan," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, including the Company's ability to launch new data-driven tools and services and its ability to grow and expand as intended, any of which could cause the Company to not achieve some or all of its goals or the Company's previously reported actual results, performance (finance or operating), including those expressed or implied by such forward-looking statements. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), copies of which may be obtained from the SEC's website at www.sec.gov. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.

Media and Investor Contact for NextPlat Corp:

Michael Glickman
MWGCO, Inc.
917-397-2272
mike@mwgco.net

SOURCE: NextPlat Corp

View source version on accesswire.com:
https://www.accesswire.com/749035/NextPlat-Announces-Completion-of-60M-Private-Offering-of-Common-Stock-Priced-Above-Market

FAQ

What is the purpose of NextPlat's recent private placement?

NextPlat completed a private placement to raise approximately $6.0 million to enhance its financial position.

How many shares did NextPlat sell in the recent offering?

NextPlat sold 3,428,571 shares of its common stock.

What impact does the private placement have on NextPlat shareholders?

The private placement may lead to shareholder dilution due to the issuance of new shares.

When does NextPlat need to file the registration statement for the new shares?

NextPlat is required to file the registration statement within 120 days of the closing date of the transaction.