Smart for Life Announces $1.58M Registered Direct Offering Priced At-The-Market Under Nasdaq Rules
Portfolio Pulse from Happy Mohamed
Smart for Life (NASDAQ: SMFL) has announced a registered direct offering of 584,892 shares at $2.71 per share, priced at-the-market under Nasdaq rules. The company will also issue unregistered common stock purchase warrants with an exercise price of $2.59 per share. The gross proceeds are expected to be approximately $1.58 million, which will be used for working capital and general corporate purposes.

May 18, 2023 | 12:09 pm
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NEUTRAL IMPACT
Smart for Life's registered direct offering and concurrent private placement of warrants may lead to short-term dilution, but the proceeds will be used for working capital and general corporate purposes.
The registered direct offering and concurrent private placement of warrants will increase the number of outstanding shares, which may lead to short-term dilution for existing shareholders. However, the proceeds will be used for working capital and general corporate purposes, which could potentially improve the company's financial position and support its growth in the long run. Therefore, the short-term impact on the stock price is considered neutral.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100