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WiSA Technologies Announces Pricing of $10.0 Million Public Offering

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WiSA Technologies, Inc. announces a public offering of 153,840,000 units, each consisting of one share of common stock and one warrant, for gross proceeds of approximately $10.0 million. The offering price per unit is $0.065, with warrants exercisable at $0.065 and expiring five years from stockholder approval.
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The public offering from WiSA Technologies represents a significant capital infusion for the company, which is aiming to raise approximately $10.0 million through the sale of units consisting of shares and warrants. The pricing of the units at $0.065 suggests a dilutive effect for current shareholders, as the company is issuing a substantial number of new shares. Investors might be concerned about the dilution of their holdings and the potential downward pressure on the stock price.

However, the funds raised could enable WiSA Technologies to invest in research and development, expand its product offerings, or reduce existing debt. The impact on the company's balance sheet and future earnings potential will be a focal point for stakeholders. The involvement of Maxim Group LLC as the sole placement agent indicates professional handling of the offering, which could reassure investors about the procedural aspects of the capital raise.

WiSA Technologies operates within the wireless audio technology sector, which is highly competitive and rapidly evolving. The proceeds from the offering could facilitate the company's growth in the smart device and home entertainment system markets. The additional capital could be used to strengthen the company's market position against competitors.

It is crucial to monitor the deployment of the raised funds and the subsequent performance metrics such as revenue growth and market share. Investors will be interested in how this financial move translates into strategic advantages and whether it can generate a return on investment through innovation or market expansion.

The offering's compliance with SEC regulations, including the use of a registration statement on Form S-1, is an essential factor in ensuring its legality and procedural correctness. The effectiveness of the Registration Statement by the SEC and the availability of a final prospectus are key steps that provide transparency to investors. These documents contain critical information regarding the company's financials, risks and the specifics of the offering, which are necessary for making informed investment decisions.

It's important to note that the warrants are exercisable upon stockholder approval, which adds a layer of governance to the process. The five-year expiration period for the warrants is a standard term, giving investors a long-term option to invest further in the company at a fixed price, which can be beneficial if the company's stock price appreciates over time.

BEAVERTON, Ore.--(BUSINESS WIRE)-- WiSA Technologies, Inc. (Nasdaq: WISA or the “Company”), a leading innovator in wireless audio technology for intelligent devices and next-generation home entertainment systems, today announced the pricing of a public offering of 153,840,000 units, with each unit consisting of one share of common stock (or pre-funded warrant in lieu thereof) and one warrant, each to purchase one (1) share of common stock for gross proceeds of approximately $10.0 million. Each unit was sold at an effective public offering price of $0.065. The warrants will be exercisable on the date of stockholder approval at an exercise price of $0.065 and will expire five years from the date of such stockholder approval.

Maxim Group LLC is acting as the sole placement agent for the offering. The offering is expected to close on February 13, 2024, subject to customary closing conditions.

The securities described above were offered pursuant to a registration statement on Form S-1, as amended (File No. 333-276631) (the “Registration Statement”), which was declared effective by the Securities and Exchange Commission (the "SEC") on February 12, 2024. The offering was made only by means of a prospectus which is a part of the Registration Statement. A final prospectus relating to the offering has been filed with the SEC. Copies of the final prospectus relating to this offering may be obtained from Maxim Group LLC, 300 Park Avenue, 16th Floor, New York, NY 10022, at (212) 895-3745.

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 WiSA Technologies, Inc.

WiSA Technologies, Inc. (NASDAQ: WISA) is a leading provider of immersive, wireless sound technology for intelligent devices and next-generation home entertainment systems. Working with leading CE brands and manufacturers such as Harman International, a division of Samsung; LG; Hisense; TCL; Bang & Olufsen; Platin Audio; and others, the company delivers immersive wireless sound experiences for high-definition content, including movies and video, music, sports, gaming/esports, and more. WiSA Technologies, Inc. is a founding member of WiSA™ (the Wireless Speaker and Audio Association) whose mission is to define wireless audio interoperability standards as well as work with leading consumer electronics companies, technology providers, retailers, and ecosystem partners to evangelize and market spatial audio technologies driven by WiSA Technologies, Inc. The company is headquartered in Beaverton, OR with sales teams in Taiwan, China, Japan, Korea, and California.

© 2024 WiSA Technologies, Inc. All rights reserved. WiSA Technologies, Inc. and the WiSA Technologies, Inc. logo are trademarks of WiSA Technologies, Inc. The WiSA logo, WiSA®, WiSA Ready™, and WiSA Certified™ are trademarks and certification marks of WiSA, LLC. Third-party trade names, trademarks and product names are the intellectual property of their respective owners.

Forward-Looking Statements

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. Forward-looking statements include statements herein with respect to the expected closing date of the offering. 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. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. 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 risks related to our ability to satisfy the closing conditions; general economic and market conditions; our current liquidity position; the need to obtain additional financing to support ongoing operations; the interoperability of WiSA E software; our ability to continue as a going concern; our ability to maintain the listing of our common stock on Nasdaq; our ability to predict the timing of design wins entering production and the potential future revenue associated with our design wins; our success in porting WiSA E software to various platforms; our rate of growth; our ability to predict direct and indirect customer demand for our existing and future products and to secure adequate manufacturing capacity; our ability to hire, retain and motivate employees; the effects of competition, including price competition within our industry segment; technological, regulatory and legal developments that uniquely or disproportionately impact our industry segment; developments in the economy and financial markets and other risks detailed from time to time in WiSA Technologies’ filings with the Securities and Exchange Commission. The information in this press release is provided only as of the date of this press release, and WiSA 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 disclaims any obligation to update these forward-looking statements.

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

Source: WiSA Technologies, Inc.

The purpose of the public offering is to raise gross proceeds of approximately $10.0 million.

The offering consists of 153,840,000 units, each comprising one share of common stock and one warrant.

The warrants included in the offering are exercisable at an exercise price of $0.065.

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

The offering is expected to close on February 13, 2024, subject to customary closing conditions.
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Semiconductor and Related Device Manufacturing
Manufacturing
Electronic Technology, Semiconductors, Manufacturing, Semiconductor and Related Device Manufacturing
United States

About WISA

summit semiconductor, llc. is a successful fabless semiconductor company developing wireless audio integrated circuits for home entertainment and pro-audio markets. its award-winning summit wireless™ technology is the leading integrated circuit solution enabling audio systems to distribute high-definition, distortion-free audio with ease. summit wireless transmit technology is designed to be integrated into audio decode sources such as digital televisions, sound bars, pa systems, av receivers, blu-ray players, set-top boxes, and gaming systems that transmit multi-channel audio to home theater or pro-audio speakers with summit receive technology integrated. summit semiconductor is headquartered beaverton, or, usa, with offices in san jose, ca, taiwan, korea and japan co-founder of the wireless speaker and audio association "wisa" standard for interoperability.