Smith Micro Completes Concurrent Equity Offerings Raising $6.9 Million
Smith Micro Software (NASDAQ: SMSI) has completed two concurrent equity offerings, raising $6.9 million in gross proceeds. The offerings include:
1. A Registered Offering of 3,321,881 shares at $1.165 per share with accompanying warrants, raising $3.87 million.
2. A Private Placement led by CEO Bill Smith, investing $3.0 million for 2,575,107 unregistered shares at $1.165 per share with warrants.
Both offerings include warrants exercisable at $1.04 per share. The company plans to use the net proceeds for working capital and general corporate purposes. The securities in the Private Placement and warrants in both offerings were issued under exemptions from SEC registration requirements.
Smith Micro Software (NASDAQ: SMSI) ha completato due emissioni azionarie simultanee, raccogliendo 6,9 milioni di dollari in proventi lordi. Le emissioni includono:
1. Un Offerta Registrata di 3.321.881 azioni a $1.165 per azione con relativi warrant, raccogliendo $3,87 milioni.
2. Un Posizionamento Privato guidato dal CEO Bill Smith, investendo $3,0 milioni per 2.575.107 azioni non registrate a $1,165 per azione con warrant.
Entrambe le emissioni includono warrant esercitabili a $1,04 per azione. L'azienda prevede di utilizzare i proventi netti per il capitale circolante e per scopi aziendali generali. I titoli nel Posizionamento Privato e i warrant in entrambe le emissioni sono stati emessi in base a esenzioni dai requisiti di registrazione della SEC.
Smith Micro Software (NASDAQ: SMSI) ha completado dos ofertas de acciones simultáneas, recaudando $6.9 millones en receitas brutas. Las ofertas incluyen:
1. Una Oferta Registrada de 3,321,881 acciones a $1.165 por acción con warrants adjuntos, recaudando $3.87 millones.
2. Un Placement Privado liderado por el CEO Bill Smith, invirtiendo $3.0 millones por 2,575,107 acciones no registradas a $1.165 por acción con warrants.
Ambas ofertas incluyen warrants ejercitables a $1.04 por acción. La compañía planea usar los ingresos netos para capital de trabajo y propósitos corporativos generales. Los valores en el Placement Privado y los warrants en ambas ofertas se emitieron bajo exenciones de los requisitos de registro de la SEC.
스미스 마이크로 소프트웨어 (NASDAQ: SMSI)는 동시에 두 개의 주식 공모를 완료하고, 총 $6.9 백만의 총 수익을 올렸습니다. 공모는 다음을 포함합니다:
1. 등록 공모로 3,321,881주를 주당 $1.165에 발행하여 $3.87 백만을 모았습니다.
2. CEO 빌 스미스 주도 하에 2,575,107주를 주당 $1.165에 발행한 사모 배정이 $3.0 백만을 투자했습니다.
양쪽 공모 모두 주당 $1.04에 행사 가능한 워런트를 포함하고 있습니다. 회사는 순수익을 운영 자본 및 일반 기업 목적에 사용할 계획입니다. 사모 배정과 두 공모의 워런트는 SEC 등록 요건의 면제에 따라 발행되었습니다.
Smith Micro Software (NASDAQ: SMSI) a finalisé deux offres d'équité simultanées, levant 6,9 millions de dollars en recettes brutes. Les offres incluent :
1. Une Offre Registrée de 3,321,881 actions à 1,165 $ par action avec des bons de souscription associés, levant 3,87 millions de dollars.
2. Un Placement Privé dirigé par le PDG Bill Smith, investissant 3,0 millions de dollars pour 2,575,107 actions non enregistrées à 1,165 $ par action avec bons de souscription.
Les deux offres comprennent des bons de souscription exerçables à 1,04 $ par action. L'entreprise prévoit d'utiliser les produits nets pour le fonds de roulement et des fins corporatives générales. Les titres dans le Placement Privé et les bons de souscription dans les deux offres ont été émis sous des exemptions aux exigences d'enregistrement de la SEC.
Smith Micro Software (NASDAQ: SMSI) hat zwei gleichzeitige Aktien-Angebote abgeschlossen und dabei $6,9 Millionen Bruttoerlöse erzielt. Die Angebote umfassen:
1. Ein Registriertes Angebot von 3.321.881 Aktien zu je $1,165 mit dazugehörigen Warrants, was $3,87 Millionen eingebracht hat.
2. Eine Private Platzierung, geleitet von CEO Bill Smith, die $3,0 Millionen für 2.575.107 nicht registrierte Aktien zu je $1,165 mit Warrants investiert hat.
Beide Angebote beinhalten Warrants, die zu $1,04 pro Aktie ausgeübt werden können. Das Unternehmen plant, die Nettoerlöse für Betriebskapital und allgemeine Unternehmenszwecke zu verwenden. Die Wertpapiere in der Private Platzierung und die Warrants in beiden Angeboten wurden unter Ausnahmen von den SEC-Registrierungsanforderungen ausgegeben.
- Raised $6.9 million in gross proceeds through equity offerings
- CEO Bill Smith invested $3.0 million, demonstrating confidence in the company
- Warrants issued at $1.04 per share, potentially providing additional future capital
- Dilution of existing shareholders due to issuance of new shares
- Offering price of $1.165 per share indicates a relatively low valuation
Insights
Smith Micro's concurrent equity offerings, raising
The pricing at
However, the need for such financing may indicate cash flow challenges. Investors should closely monitor how efficiently Smith Micro utilizes these funds to drive growth and improve its financial position. The dilutive effect of these offerings on existing shareholders is a concern, but may be offset by the potential for business expansion and value creation if the capital is deployed effectively.
The structure of Smith Micro's offerings demonstrates careful legal planning to comply with securities regulations. The registered offering to institutional and accredited investors aligns with SEC requirements, utilizing an effective shelf registration statement. This approach provides transparency and liquidity for these investors.
Concurrently, the private placement with the CEO under Section 4(a)(2) and Rule 506 of Regulation D exempts this portion from registration requirements. This dual-structure approach allows for a quicker capital raise while accommodating the CEO's significant investment.
The warrant provisions, particularly the
While legally sound, this complex transaction structure underscores the importance of robust corporate governance and transparent communication with shareholders regarding dilution and use of proceeds.
Founder and CEO Bill Smith Leads with
Registered Offering
The Company has completed its offering of 3,321,881 registered shares of its common stock (together with accompanying unregistered warrants) at a price of
Private Placement
Concurrently, the investment in Company securities by the Company’s chief executive officer by means of a private placement of 2,575,107 unregistered shares of the Company’s common stock (together with unregistered warrants to purchase an equal number of shares), at a purchase price of
The Private Placement resulted in gross proceeds to the Company of approximately
Smith Micro intends to use the net proceeds from both the Registered Offering and the Private Placement transaction for working capital and general corporate purposes. Buchanan Ingersoll & Rooney PC served as legal counsel to the Company.
A shelf registration statement on Form S-3, File No. 333-264667, relating to the Registered Offering of the shares of common stock described above was filed with the Securities and Exchange Commission (“SEC”) and declared effective on May 12, 2022. A prospectus supplement describing the terms of the Registered Offering and the accompanying base prospectus have been filed with the SEC and are available for free on the SEC’s website located at http://www.sec.gov. The offering of the securities in the Registered Offering may be made only by means of a prospectus. Electronic copies of the prospectus supplement and the accompanying prospectus relating to the offering, when available, may be obtained by contacting: Smith Micro Software, Inc., 5800 Corporate Drive,
The common stock issued in the Private Placement transaction and the warrants for the Registered Offering and Private Placement transaction were offered and sold in a transaction exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to the exemption for transactions by an issuer not involving any public offering under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D of the Securities Act and in reliance on similar exemptions under applicable state laws. Accordingly, the privately placed shares, all warrants and underlying shares of common stock issuable upon exercise of the warrants issued in both the Registered Offering and Private Placement transaction may not be offered or sold in
This press release is not an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Smith Micro Software, Inc.
Smith Micro develops software to simplify and enhance the mobile experience, providing solutions to some of the leading wireless service providers around the world. From enabling the family digital lifestyle to providing powerful voice messaging capabilities, our solutions enrich today’s connected lifestyles while creating new opportunities to engage consumers via smartphones and consumer IoT devices. The Smith Micro portfolio also includes a wide range of products for creating, sharing and monetizing rich content, such as visual voice messaging, optimizing retail content display and performing analytics on any product set. For more information, visit www.smithmicro.com.
Forward-Looking Statements
Certain statements in this release are forward-looking statements regarding future events or results, including statements related to the Company’s market and other conditions; the ability of the Company to satisfy all conditions precedent to the second closing of the Private Placement; the ability of the Company to satisfy its post-closing obligations in connection with the offerings; the anticipated use of proceeds from the offerings; and other statements using such words as “expect,” “anticipate,” “believe,” “plan,” “intend,” “could,” “may,” “will” and other similar expressions. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including risks and uncertainties related to completion of the Private Placement on the anticipated terms or at all; market conditions, risks that the second closing of the Private Placement may not occur, the satisfaction of offering-related contractual post-closing obligations in connection with the offerings, and the use of proceeds from the offerings. These and other factors discussed in our filings with the Securities and Exchange Commission, including our filings on Forms 10-K and 10-Q, could cause actual results to differ materially from those expressed or implied in any forward-looking statements. The forward-looking statements contained in this release are made on the basis of the views and assumptions of management, and we do not undertake any obligation to update these statements to reflect events or circumstances occurring after the date of this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241003532303/en/
PR/IR INQUIRIES:
Charles Messman
Investor Relations
(949) 362-2306
IR@smithmicro.com
Source: Smith Micro Software, Inc.
FAQ
How much did Smith Micro Software (SMSI) raise in its recent equity offerings?
What was the price per share for SMSI's recent equity offerings?
How much did SMSI's CEO invest in the Private Placement?
What is the exercise price of the warrants issued in SMSI's equity offerings?
How does SMSI plan to use the proceeds from the equity offerings?
