MIAMI - Innovative Eyewear, Inc. (Nasdaq: LUCY; LUCYW), known for its development and sale of smart eyewear, announced today a registered direct offering and concurrent private placement. The company is set to issue 5,263,161 shares of common stock at $0.475 per share, with an expected closing date of tomorrow, subject to customary closing conditions.
The private placement will also include unregistered warrants to purchase an equivalent number of shares at the same price, exercisable immediately and expiring five years from the date of issuance.
H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering, which is expected to generate gross proceeds of approximately $2.5 million. After accounting for the placement agent's fees and other expenses, the net proceeds will be directed towards working capital and general corporate purposes.
The shares in this offering are being sold pursuant to an effective shelf registration statement, including a base prospectus, filed with the Securities and Exchange Commission (SEC) on February 7, 2024, and declared effective on March 29, 2024. Prospective investors can obtain copies of the final prospectus supplement and accompanying base prospectus related to the offering from the SEC's website or directly from H.C. Wainwright & Co.
The unregistered warrants and underlying shares of common stock have not been registered under the Securities Act of 1933, as amended, or any state securities laws and are being offered in a transaction not involving a public offering. Therefore, they may not be reoffered or resold in the U.S. without an effective registration or an applicable exemption from registration requirements.
Innovative Eyewear's portfolio includes ChatGPT enabled smart eyewear under various brand names such as Lucyd®, Nautica®, Eddie Bauer®, and Reebok®. The company's mission is to "Upgrade Your Eyewear®," offering Bluetooth audio glasses in numerous frame and lens combinations to cater to the optical market.
This press release, which serves as the basis for this news article, contains forward-looking statements regarding the offering's completion and the intended use of proceeds. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
The information for this news article was sourced from a press release statement by Innovative Eyewear, Inc.
InvestingPro Insights
As Innovative Eyewear, Inc. gears up for its registered direct offering and private placement, investors are keenly observing the company's financial health and market performance. According to InvestingPro data, the company holds a market capitalization of $17.2 million, which provides a snapshot of its size in the competitive eyewear industry. Despite a challenging financial landscape, with a negative operating income margin of -538.18% for the last twelve months as of Q1 2024, the company has demonstrated a staggering revenue growth of 144.6% during the same period.
Investors should note that the company's stock has experienced significant volatility, with a 391.5% return over the last week. This aligns with an InvestingPro Tip highlighting the high price volatility that the stock generally trades with. Additionally, analysts are optimistic about sales growth in the current year, which may be a driving factor behind the recent price uptick.
While the company does not pay dividends, which could be a consideration for income-focused investors, it has managed to maintain more cash than debt on its balance sheet. This is an encouraging sign for potential investors, as it suggests a degree of financial stability and liquidity. Moreover, with liquid assets exceeding short-term obligations, Innovative Eyewear appears to be in a position to manage its immediate financial commitments.
For investors looking for deeper insights, there are over 10 additional InvestingPro Tips available, which can provide a more comprehensive understanding of Innovative Eyewear's financial position and market potential. Interested readers can explore these valuable tips by visiting InvestingPro and using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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