Smith Micro Announces Above Market $7.5 Million Private Placement Offering of Common Stock and Warrants
November 07 2018 - 9:10AM
Business Wire
Smith Micro Software, Inc. (NASDAQ: SMSI) (“Smith Micro” or the
“Company”) today announced that it has entered into a securities
purchase agreement with institutional investors for the issuance
and sale of $7.5 million of the Company’s common stock at a
purchase price of $2.32 per share. As part of the purchase, each
investor will also receive a warrant to purchase an additional
number of shares of common stock equal to the number of shares
purchased by the investor at an exercise price of $2.20 per share.
Further, as part of the transaction, previously issued warrant
agreements are being amended, which will allow the Company to
reclassify them as equity.
The offering is expected to close on or about November 7, 2018,
subject to the satisfaction of customary closing conditions.
The Company’s estimated net proceeds from the private placement
are expected to be approximately $6.9 million. The Company intends
to use the net proceeds for general corporate purposes and to repay
certain short and long-term debt obligations.
“I am pleased with the financing that we announced today,” said
William W. Smith, Jr., President and CEO of Smith Micro Software.
“This capital raise significantly enhances our balance sheet,
giving us maximum flexibility to execute quickly on strategic
initiatives, while simultaneously paying off short and long-term
debts.”
Chardan acted as exclusive placement agent in connection with
this offering. Roth Capital Partners served as financial advisor,
and Buchanan Ingersoll & Rooney PC served as counsel to the
Company.
As part of the closing, the Company will enter into a
registration rights agreement with investors whereby the Company
agrees to prepare and file a registration statement with the
Securities and Exchange Commission to allow for the registration of
the resale of shares of common stock issued in the transaction, as
well as the shares of common stock issuable upon exercise of the
warrants issued in the transaction.
About Smith Micro Software, Inc.
Smith Micro develops software to simplify and enhance the mobile
experience, providing solutions to some of the leading wireless
service providers and Cable MSOs around the world. From enabling
the family digital lifestyle to providing powerful voice messaging
capabilities, our solutions enrich today’s connected lifestyles
while creating new opportunities to engage consumers via
smartphones and consumer IoT devices. Our portfolio also includes a
wide range of products for creating, sharing and monetizing rich
content, such as visual messaging, and 2D/3D graphics applications.
For more information, visit www.smithmicro.com.
Forward-Looking Statements:
Certain statements in this press release are forward-looking
statements regarding future events or results, including statements
related to our future business plans and operating and financial
results, our plans for future M&A and strategic activity, our
intended payment of debts, and statements using such words as
“expect,” “anticipate,” “believe,” “plan,” “intend,” “could,”
“will” and other similar expressions. Forward-looking statements
involve risks and uncertainties, which could cause actual results
to differ materially from those expressed or implied in the
forward-looking statements. Among the important factors that could
cause or contribute to such differences are our ability to continue
as a going concern, our ability to raise more funds to meet our
capital needs, changes in demand for our products from our
customers and their end-users, customer concentration, given that
the majority of our sales depend on a few large customer
relationships, new and changing technologies, customer acceptance
and timing of deployment of those technologies, and our ability to
compete effectively with other software and technology companies.
These and other factors discussed in our filings with the
Securities and Exchange Commission, including our filings on Forms
10-K and 10-Q, could cause actual results to differ materially from
those expressed or implied in any forward-looking statements. The
forward-looking statements contained in this release are made on
the basis of the views and assumptions of management, and we do not
undertake any obligation to update these statements to reflect
events or circumstances occurring after the date of this
release.
Smith Micro and the Smith Micro logo are registered trademarks
or trademarks of Smith Micro Software, Inc. All other trademarks
and product names are the property of their respective owners.
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version on businesswire.com: https://www.businesswire.com/news/home/20181107005503/en/
IR INQUIRIES:Smith Micro Software, Inc.Charles Messman,
949-362-5800Investor RelationsIR@smithmicro.com
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