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SOBRsafe Announces Pricing of $8.2 Million Private Placement

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SOBRsafe (NASDAQ:SOBR), a provider of transdermal alcohol detection solutions, has announced the pricing of a $8.2 million private placement with institutional investors. The company plans to issue 2,024,691 units at $4.05 per unit, each consisting of one common stock share (or pre-funded warrant) and multiple warrants. The Series A warrants are exercisable at $3.80 per share, while the Series B warrants have a $0.001 exercise price.

The private placement is expected to close around October 8, 2024, subject to customary conditions. Aegis Capital Corp. is acting as the Exclusive Placement Agent. SOBRsafe intends to use the net proceeds for general corporate purposes and working capital. The company has agreed to file registration statements with the SEC for the resale of the securities issued in this private placement.

SOBRsafe (NASDAQ:SOBR), un fornitore di soluzioni per la rilevazione dell'alcol transdermico, ha annunciato la determinazione del prezzo di una collocazione privata di 8,2 milioni di dollari con investitori istituzionali. L'azienda prevede di emettere 2.024.691 unità a 4,05 dollari per unità, ciascuna composta da un'azione ordinaria (o warrant prefinanziati) e diversi warrant. I warrant di Serie A sono esercitabili a 3,80 dollari per azione, mentre i warrant di Serie B hanno un prezzo di esercizio di 0,001 dollari.

La collocazione privata dovrebbe chiudersi intorno al 8 ottobre 2024, soggetta a condizioni consuete. Aegis Capital Corp. funge da Agente di Collocamento Esecutivo. SOBRsafe intende utilizzare il ricavato netto per scopi aziendali generali e capitale circolante. L'azienda ha concordato di presentare dichiarazioni di registrazione alla SEC per la rivendita dei titoli emessi in questa collocazione privata.

SOBRsafe (NASDAQ:SOBR), un proveedor de soluciones de detección de alcohol transdérmico, ha anunciado el precio de una colocación privada de 8.2 millones de dólares con inversores institucionales. La empresa planea emitir 2,024,691 unidades a 4.05 dólares por unidad, cada una compuesta por una acción ordinaria (o warrant prefinanciado) y múltiples warrants. Los warrants de la Serie A son ejercitables a 3.80 dólares por acción, mientras que los warrants de la Serie B tienen un precio de ejercicio de 0.001 dólares.

Se espera que la colocación privada cierre alrededor del 8 de octubre de 2024, sujeto a condiciones habituales. Aegis Capital Corp. actúa como Agente de Colocación Exclusivo. SOBRsafe tiene la intención de utilizar los ingresos netos para fines corporativos generales y capital de trabajo. La empresa ha acordado presentar declaraciones de registro ante la SEC para la reventa de los valores emitidos en esta colocación privada.

SOBRsafe (NASDAQ:SOBR)는 경피 알코올 감지 솔루션 제공업체로, 기관 투자자들과 함께 820만 달러의 사모 배정 가격을 발표했습니다. 회사는 2,024,691개의 단위를 개당 4.05달러에 발행할 계획이며, 각 단위는 보통주(또는 미리 자금을 조달한 워런트) 및 여러 워런트로 구성됩니다. 시리즈 A 워런트는 주당 3.80달러에 행사 가능하며, 시리즈 B 워런트는 0.001달러의 행사 가격을 가집니다.

사모 배정은 2024년 10월 8일 경에 종료될 것으로 보이며, 일반적인 조건에 따라 진행됩니다. Aegis Capital Corp.는 독점 배정 대리인으로 활동합니다. SOBRsafe는 순자금을 일반적인 기업 목적 및 운영 자본에 사용할 계획입니다. 회사는 이 사모 배정에서 발행한 증권의 재판매를 위해 SEC에 등록 성명을 제출하기로 합의했습니다.

SOBRsafe (NASDAQ:SOBR), un fournisseur de solutions de détection d'alcool transdermique, a annoncé le prix d'une émission privée de 8.2 millions de dollars avec des investisseurs institutionnels. L'entreprise prévoit d'émettre 2.024.691 unités à 4,05 dollars par unité, chacune composée d'une action ordinaire (ou d'un warrant préfinancé) et de plusieurs warrants. Les warrants de la série A sont exerçables à 3,80 dollars par action, tandis que les warrants de la série B ont un prix d'exercice de 0,001 dollar.

On s'attend à ce que l'émission privée se clôture autour du 8 octobre 2024, sous réserve des conditions habituelles. Aegis Capital Corp. agit en tant qu'agent de placement exclusif. SOBRsafe a l'intention d'utiliser les produits nets pour des objectifs corporatifs généraux et du fonds de roulement. L'entreprise a convenu de déposer des déclarations d'enregistrement auprès de la SEC pour la revente des titres émis dans cette émission privée.

SOBRsafe (NASDAQ:SOBR), ein Anbieter von transdermalen Alkoholnachweislösungen, hat die Preisgestaltung einer Privatplatzierung über 8,2 Millionen Dollar mit institutionellen Anlegern bekannt gegeben. Das Unternehmen plant die Emission von 2.024.691 Einheiten zu einem Preis von 4,05 Dollar pro Einheit, wobei jede aus einer Stammaktie (oder vorfinanzierten Warrant) und mehreren Warrants besteht. Die Serie A Warrants sind zu einem Preis von 3,80 Dollar pro Aktie ausübbar, während die Serie B Warrants einen Ausübungspreis von 0,001 Dollar haben.

Die Privatplatzierung soll voraussichtlich um den 8. Oktober 2024 abgeschlossen werden, vorbehaltlich üblicher Bedingungen. Aegis Capital Corp. fungiert als exklusiver Platzierungsagent. SOBRsafe beabsichtigt, den Nettoerlös für allgemeine Unternehmenszwecke und Betriebskapital zu verwenden. Das Unternehmen hat sich verpflichtet, bei der SEC Registrierungsanträge für den Weiterverkauf der in dieser Privatplatzierung emittierten Wertpapiere einzureichen.

Positive
  • Secured $8.2 million in gross proceeds through private placement
  • Potential for additional capital through warrant exercises
  • Strengthened balance sheet for general corporate purposes and working capital
Negative
  • Potential dilution of existing shareholders due to new share issuance
  • Warrants may lead to further dilution if exercised
  • Private placement shares sold at a discount to market price

Insights

This $8.2 million private placement is a significant capital raise for SOBRsafe, a company with a market cap of only $2.69 million. The deal structure is complex, involving units consisting of common stock (or pre-funded warrants), Series A warrants and Series B warrants. The effective unit price of $4.05 represents a substantial premium to the current stock price, which is positive.

However, the potential dilution from the warrants is concerning. The Series A warrants have an exercise price of $3.80, while the Series B warrants have a nominal $0.001 exercise price with an adjustable number of shares. This could lead to significant future dilution for existing shareholders.

The company's intent to use proceeds for general corporate purposes and working capital suggests a need for immediate cash infusion. While this funding provides a lifeline, it doesn't necessarily indicate new growth opportunities or product developments. Investors should closely monitor how management utilizes these funds to drive value.

The private placement's structure raises several legal considerations. First, the issuance of unregistered securities under a Securities Act exemption limits the immediate tradability of these shares. The company's commitment to file registration statements for resale is important for investor liquidity but adds regulatory overhead.

The complex warrant structure, particularly the Series B warrants with adjustable share counts, may invite scrutiny from regulators concerned about potential market manipulation. Additionally, the anti-dilution provisions in the Series A warrants could trigger future legal challenges if they significantly impact existing shareholders' rights.

Investors should note that despite the company's disclosure, this private placement still carries legal risks typical of such transactions, including potential claims of inadequate disclosure or unfair terms. The involvement of reputable legal counsel on both sides may mitigate some of these risks, but doesn't eliminate them entirely.

DENVER, CO / ACCESSWIRE / October 7, 2024 / SOBR Safe, Inc. (NASDAQ:SOBR) ("SOBRsafe"), provider of next-generation transdermal alcohol detection solutions, today announced the pricing of a private placement with certain institutional investors. The aggregate gross cash proceeds are expected to be $8.2 million, before deducting fees to the placement agent and other offering expenses payable by the Company. The Company intends to use the net proceeds from the private placement for general corporate purposes and working capital.

In connection with the private placement, the Company is planning to issue an aggregate of 2,024,691 units. Each unit will be sold at an effective unit price of $4.05 per unit and will consist of one share of common stock (or one pre-funded warrant in lieu thereof), two (2) Series A warrants, each exercisable for one share of common stock at an initial exercise price of $3.80 per share and one Series B warrant at an exercise price of $0.001 to purchase such number of shares of common stock as will be determined on the Reset Date (as defined in the Series B warrant). The Series A warrants and the Series B warrants are exercisable beginning on the date that Stockholder Approval (as defined in the Series A warrant) is obtained. The Series A warrants will have a term of 5 years and the Series B warrants are exercisable until exercised in full. The exercise price and number of shares of common stock issuable upon exercise of the Series A warrants are subject to adjustment upon future dilutive issuances and stock splits, subject to a floor, and the exercise price and number of shares of common stock issuable upon exercise of the Series B warrants are subject to adjustment upon stock splits, subject to a floor, in each case, as described in more detail in the Current Report on Form 8-K to be filed in connection with the private placement.

The closing of the private placement is expected to occur on or about October 8, 2024, subject to the satisfaction of certain customary closing conditions.

Aegis Capital Corp. is acting as the Exclusive Placement Agent for the private placement. Lucosky Brookman LLP is acting as counsel to the Company. Sichenzia Ross Ference Carmel LLP is acting as counsel to Aegis Capital Corp.

The securities described above are being sold in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended (the "Act"), and have not been registered under the Act, or applicable state securities laws. Accordingly, the securities 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 Act and such applicable state securities laws. Pursuant to a registration rights agreement with the investor, the Company has agreed to file one or more registration statements with the Securities and Exchange Commission (the "SEC") covering the resale of the common stock sold in the private placement and the common stock issuable upon exercise of the pre-funded warrants and the warrants sold in the private placement.

This press release shall not constitute an offer to sell or the 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 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 jurisdiction.---

About SOBRsafe™
Alcohol misuse is the fourth leading cause of preventable death in America, and the seventh worldwide. Yet prevention and monitoring solutions have not kept pace with this epidemic. Legacy technologies are invasive and inefficient, unhygienic and unconnected. There has to be a better way.

Enter SOBRsafe™. Our advanced transdermal (touch-based) technology detects and instantaneously reports the presence of alcohol as emitted through a user's skin - no breath, blood or urine sample is required. With a powerful backend data platform, SOBRsafe provides next generation, passive detection technology for the behavioral health, judicial and consumer markets, and for licensing and integration.

The SOBRsafe technology is commercially available for point-of-care screening (SOBRcheck) and continuous monitoring (SOBRsure). At SOBRsafe, our mission is to create better outcomes and save lives. To learn more, visit www.sobrsafe.com.

Safe Harbor Statement
Our prospects here at SOBRsafe are subject to uncertainties and risks. This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. The Company intends that such forward-looking statements be subject to the safe harbor provided by the foregoing Sections. These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management. Therefore, actual results could differ materially from the forward-looking statements contained in this presentation. The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", "projects", "should", or other expressions that are predictions of or indicate future events or trends, to be uncertain and forward-looking. We caution readers not to place undue reliance upon any such forward-looking statements. The Company does not undertake to publicly update or revise forward-looking statements, whether because of new information, future events or otherwise. Additional information respecting factors that could materially affect the Company and its operations are contained in the Company's filings with the SEC which can be found on the SEC's website at www.sec.gov.

Contact SOBRsafe:
IR@sobrsafe.com

SOURCE: SOBRsafe



View the original press release on accesswire.com

FAQ

What is the total value of SOBRsafe's (SOBR) recent private placement?

SOBRsafe (SOBR) has announced a private placement with expected gross cash proceeds of $8.2 million.

How many units is SOBRsafe (SOBR) planning to issue in the private placement?

SOBRsafe (SOBR) is planning to issue an aggregate of 2,024,691 units in the private placement.

What is the price per unit in SOBRsafe's (SOBR) private placement?

The effective unit price in SOBRsafe's (SOBR) private placement is $4.05 per unit.

When is the expected closing date for SOBRsafe's (SOBR) private placement?

The closing of SOBRsafe's (SOBR) private placement is expected to occur on or about October 8, 2024.

What will SOBRsafe (SOBR) use the proceeds from the private placement for?

SOBRsafe (SOBR) intends to use the net proceeds from the private placement for general corporate purposes and working capital.

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