Innovative Eyewear, Inc. Announces Closing of Exercise of Warrants
Rhea-AI Summary
Innovative Eyewear (NASDAQ: LUCY), a manufacturer of smart eyewear brands including Lucyd, Reebok, Eddie Bauer, and Nautica, has announced the completion of warrant exercises and new warrant issuances. The company received $2.2 million from warrant exercises at $2.60 per share for 746,782 shares, and issued new Series I warrants for up to 2,240,346 shares. Additionally, over the past 30 days, the company received $2.6 million from separate warrant exercises for 986,532 shares.
The new Series I warrants were priced at $0.125 each, generating approximately $0.3 million in proceeds. These warrants have an exercise price of $2.60 per share and an 18-month expiration period. H.C. Wainwright & Co. served as the exclusive placement agent for the offering.
Positive
- Raised total gross proceeds of $4.8 million from warrant exercises
- Additional potential funding through new Series I warrants if exercised
- Strengthened balance sheet for working capital and corporate purposes
Negative
- Potential dilution from issuance of 746,782 new shares and up to 2,240,346 additional shares if Series I warrants are exercised
- New Series I warrants issued at significant discount ($0.125 per warrant)
- Company needed to incentivize warrant exercises through additional warrant issuance
News Market Reaction – LUCY
In the trading session that priced this news, LUCY declined 9.64%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.
In consideration for the immediate exercise of the warrants for cash in the warrant inducement transaction, the Company issued new unregistered Series I warrants to purchase up to an aggregate of 2,240,346 shares of common stock, at a purchase price of
The gross proceeds to the Company from the exercise of the warrants in the warrant inducement transaction were approximately
In addition, over the last 30 days the Company has received aggregate gross proceeds of approximately
The new Series I warrants described above related to the warrant inducement transaction were offered in a private placement and, along with the shares of common stock issuable upon exercise of the new warrants, have not been registered under the Securities Act of 1933, as amended (the "1933 Act"), or applicable state securities laws. Accordingly, the new warrants and shares of common stock issuable upon the exercise of the new warrants may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the 1933 Act and such applicable state securities laws. The Company has agreed to file a registration statement with the Securities and Exchange Commission ("SEC") as soon as practicable and within 30 days covering the resale of the shares of common stock issuable upon exercise of the new Series I warrants.
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.
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 but not limited to, those relating to the 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. 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 Contact:
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.