SRM Entertainment Announces Lock-Up Agreement with Major Shareholder, Reinforcing Commitment to Long-Term Growth and Shareholder Value
Rhea-AI Summary
SRM Entertainment (Nasdaq: SRM) has announced a significant lock-up agreement with major shareholder Safety Shot, Inc., covering 2,347,142 shares, representing approximately 13.7% of SRM's outstanding shares. The agreement, effective February 10, 2025, prevents Safety Shot from selling these shares until January 1, 2026.
The lock-up agreement aims to promote an orderly trading market and demonstrates the shareholder's confidence in SRM's future prospects. CEO Rich Miller emphasized that this agreement represents a significant vote of confidence in the company's strategic direction and growth potential, supporting their plans for market expansion and product innovation while creating a stable environment for the stock.
Positive
- Lock-up of 13.7% of outstanding shares until January 2026 reduces potential stock price volatility
- Major shareholder commitment signals confidence in company's future prospects
- Agreement promotes market stability and orderly trading conditions
Negative
- None.
News Market Reaction 1 Alert
On the day this news was published, SRM gained 95.53%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Winter Park, FL, Feb. 14, 2025 (GLOBE NEWSWIRE) -- SRM Entertainment, Inc. (Nasdaq: SRM) (the “Company,” or “SRM”), today announced a lock-up agreement with a major shareholder, Safety Shot, Inc., encompassing 2,347,142 shares of the Company’s common stock. This represents approximately
This lock-up agreement is designed to foster an orderly trading market for SRM Entertainment’s shares and underscores the confidence the shareholder has in the Company's future prospects. It aligns the shareholder's interests with those of all other shareholders, promoting long-term value creation.
"This lock-up agreement is a significant vote of confidence in SRM Entertainment's strategic direction and growth potential," said Rich Miller, CEO of SRM Entertainment. "We are thrilled to have Safety Shot’s continued support as we execute our plans to expand our market reach, introduce creative products, and drive shareholder value. This agreement reinforces our shared belief in the Company's long-term success and helps create a stable environment for our stock, benefiting all SRM shareholders."
The lock-up agreement provides stability and reinforces the Company's commitment to building long-term value. It signals a positive outlook on SRM Entertainment's future performance and reduces the potential for significant fluctuations in the stock price due to large share sales.
About SRM Entertainment, Inc.
SRM Entertainment designs, develops, and manufactures custom merchandise which includes toys and souvenirs for the world's largest theme parks and other entertainment venues. Many of SRM’s creative products are based on award winning multi-billion-dollar entertainment franchises that are featured in popular movies and books. SRM products are distributed worldwide at Walt Disney Parks and Resorts, Universal Parks and Destinations, United Parks and Resorts – SeaWorld, Six Flags and other attractions. SRM’s products are offered alongside popular rides and attractions in theme parks, zoos, aquariums, and other entertainment venues. SRM’s design team developed specialty dolls, plush and toys for one of New York City’s landmarks that features a popular holiday show. SRM’s design team is credited with creating popular products which have been successfully sold at specialty theme park events. SRM’s exclusive-patented Sip With Me cups feature fun, kid friendly Zoo, Sea and animal themed characters as well as licensed characters from Smurfs, ICEE and Zoonicorn.
Caution Regarding Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. These statements are subject to uncertainties and risks including, but not limited to, the risk factors discussed in the Risk Factors and in Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of our Forms 10-K, 10-Q and other reports filed with the SEC and available at www.sec.gov. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law.
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FAQ
How many shares are covered by SRM Entertainment's lock-up agreement with Safety Shot?
When does SRM Entertainment's lock-up agreement with Safety Shot expire?
What percentage of SRM Entertainment's shares are affected by the Safety Shot lock-up agreement?
How will the lock-up agreement benefit SRM shareholders?
