WiSA Technologies Announces Pricing of $6.2 Million Registered Direct Offering and Concurrent Private Placement Priced At-The-Market

Rhea-AI Summary

WiSA Technologies, Inc. has announced a registered direct offering of 583,306 shares of common stock and concurrent private placement of warrants to raise approximately $6.2 million. The offering price is set at $10.68 per share, with warrants exercisable at $10.49. This capital infusion aims to bolster WiSA’s growth in the spatial audio technology market. The offering is expected to close on February 3, 2023, pending customary closing conditions. Maxim Group LLC serves as the exclusive placement agent for this offering.

Positive

• Raising approximately $6.2 million to support business growth.
• The offering price reflects demand for shares in the market.

Negative

• Potential dilution of shares due to the issuance of new shares and warrants.
• Market reaction could be negative as direct offerings often lead to share price declines.

BEAVERTON, Ore.--(BUSINESS WIRE)-- WiSA Technologies, Inc. (Nasdaq: WISA), a developer of spatial, wireless sound technology for smart devices and next-generation home entertainment systems, today announced that it has entered into a securities purchase agreement with certain institutional investors to purchase 583,306 shares of common stock (or pre-funded warrants in lieu thereof) in a registered direct offering priced at-the-market under Nasdaq rules. In a concurrent private placement, the Company also agreed to issue and sell unregistered warrants to purchase up to an aggregate of 874,959 shares of common stock. The combined effective offering price for each share of common stock (or pre-funded warrant in lieu thereof) and warrant is $10.68. The warrants will be immediately exercisable, will expire five years from the issuance date and will have an exercise price of $10.49 per whole share.

The gross proceeds to the Company from the registered direct offering and concurrent private placement are estimated to be approximately $6.2 million before deducting the placement agent’s fees and other estimated offering expenses payable by the Company. The offering is expected to close on or about February 3, 2023, subject to the satisfaction of customary closing conditions.

Maxim Group LLC is acting as the exclusive placement agent for the offering and concurrent private placement.

The shares of common stock and pre-funded warrants are being offered pursuant to a shelf registration statement on Form S-3 (File No. 333-267211), which was declared effective by the United States Securities and Exchange Commission ("SEC") on September 13, 2022. The warrants to be issued in the concurrent private placement and the shares issuable upon exercise of such warrants were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Act"), and Regulation D promulgated thereunder and have not been registered under the Act or applicable state securities laws.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall 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 the registration or qualification under the securities laws of any such state or other jurisdiction. A prospectus supplement relating to the shares of common stock, pre-funded warrants and shares of common stock issuable upon exercise of the pre-funded warrants will be filed by the Company with the SEC. When available, copies of the prospectus supplement relating to the registered direct offering, together with the accompanying prospectus, can be obtained at the SEC's website at www.sec.gov or from Maxim Group LLC, 300 Park Avenue, New York, NY 10022, at (212) 895-3745.

About WiSA Technologies, Inc.

WiSA Technologies (Nasdaq: WISA) develops, markets, and sells spatial audio wireless technology for smart devices and next-generation home entertainment systems. Its consortium—the WiSA Association—works with leading consumer electronics companies, technology providers, retailers, and industry partners to make spatial audio an experience that everyone can enjoy. The Company is headquartered in Beaverton, OR.

Safe Harbor Statement

This press release contains forward-looking statements, which are not historical facts, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions and include statements regarding the expected closing date of the offering. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties including, but not limited to, our ability to consummate the offering and satisfy the applicable closing conditions, and other risks impacting WiSA Technologies’ business, such as, current macroeconomic uncertainties associated with the COVID-19 pandemic, WiSA Technologies’ ability to predict the timing of design wins entering production and the potential future revenue associated with WiSA Technologies’ design wins; WiSA Technologies’ rate of growth; WiSA Technologies’ ability to predict customer demand for its existing and future products and to secure adequate manufacturing capacity; consumer demand conditions affecting WiSA Technologies’ customer’s end markets; WiSA Technologies’ ability to hire, retain and motivate employees; the effects of competition, including price competition; technological, regulatory and legal developments; developments in the economy and financial markets and other risks as more fully described in the Company’s filings with the SEC, including the section titled “Risk Factors” in the prospectus supplement and registration statement related to the offering. The information in this press release is provided only as of the date of this press release, and WiSA Technologies undertakes no obligation to update any forward-looking statements contained in this press release based on new information, future events, or otherwise, except as required by law. WiSA Technologies disclaims any obligation to update these forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230201005428/en/

David Barnard, LHA Investor Relations, 415-433-3777, wisa@lhai.com

Source: WiSA Technologies, Inc.

FAQ

What is the purpose of the registered direct offering by WiSA Technologies (WISA)?

The registered direct offering aims to raise approximately $6.2 million to support business growth.

What are the details of the share offering and warrants by WiSA Technologies (WISA)?

WiSA Technologies is offering 583,306 shares at $10.68 each and issuing warrants to purchase 874,959 shares at an exercise price of $10.49.

When is the expected closing date for WiSA Technologies' offering?

The offering is expected to close on February 3, 2023, subject to customary closing conditions.

Who is the placement agent for WiSA Technologies' offering?

Maxim Group LLC is acting as the exclusive placement agent for the offering.

What are the risks associated with the stock offering by WiSA Technologies (WISA)?

Potential risks include share dilution and negative market reactions to the offering.