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DENVER - SOBRsafe, Inc. (NASDAQ:SOBR), a provider of alcohol monitoring and detection technology, announced Monday it has closed a previously announced private placement that raised approximately $2 million in gross proceeds. The micro-cap company, currently valued at just $3.34 million according to InvestingPro data, has seen its shares surge 83% over the past week despite being down over 80% year-to-date.
The at-the-market offering under Nasdaq rules consisted of 1,290,324 shares of common stock (or pre-funded warrants), along with Series C and Series D warrants to purchase up to an additional 1,290,324 shares each. The securities were priced at $1.55 per share with associated warrants having an exercise price of $1.30 per share.
H.C. Wainwright & Co. served as the exclusive placement agent for the transaction, while Aegis Capital Corp. received a cash tail fee, according to the company’s press release statement.
The Series C warrants will expire five years after the effective date of a resale registration statement, while the Series D warrants will expire after 24 months.
SOBRsafe indicated it plans to use the net proceeds for working capital and general corporate purposes.
The securities were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933 and Regulation D, available only to accredited investors. The company has agreed to file registration statements with the SEC covering the resale of the unregistered securities.
SOBRsafe develops transdermal (touch-based) technology that detects alcohol through a user’s skin, providing real-time monitoring without requiring breath, blood, or urine samples. While the company’s revenue grew by 98% in the last twelve months to $360,000, InvestingPro analysis indicates it’s not yet profitable, with analysts forecasting continued losses this year. Investors tracking this volatile stock can access 12 more ProTips and comprehensive financial metrics through an InvestingPro subscription.
In other recent news, Sobr Safe Inc announced a private placement to raise approximately $2 million. The company has entered into definitive agreements to sell 1,290,324 shares of common stock, or pre-funded warrants, along with Series C and Series D warrants at a purchase price of $1.55 per share. The warrants will have an exercise price of $1.30 per share and will be exercisable immediately upon issuance. This development aims to bolster the company’s financial position. The announcement follows the company’s efforts to enhance its capital structure. These recent developments reflect Sobr Safe’s ongoing strategic initiatives. The private placement is a significant step in addressing the company’s financial needs.
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