MIAMI - Innovative Eyewear, Inc. (NASDAQ:LUCY), a developer of smart eyewear, announced Monday the definitive agreements for the immediate exercise of certain outstanding warrants to purchase an aggregate of 126,699 shares of the company's common stock. These warrants were initially issued on June 26, 2023, with an original exercise price of $21.00 per share but will now be exercised at a reduced price of $5.00 per share.
The transaction is expected to close on Wednesday, subject to customary closing conditions. H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering. The shares of common stock to be issued upon exercise of the warrants are registered under an effective registration statement on Form S-1.
Innovative Eyewear anticipates gross proceeds of approximately $633,495 from the exercise of the warrants, before deducting placement agent fees and other offering expenses. The net proceeds are intended for working capital and general corporate purposes.
In exchange for the immediate cash exercise of the warrants, Innovative Eyewear will issue new unregistered Series A and Series B warrants to purchase up to an aggregate of 126,699 shares of common stock each, at the same exercise price of $5.00 per share. The Series A warrants will be exercisable immediately and will expire five and a half years from the date of issuance, while the Series B warrants will also be exercisable immediately but will expire eighteen months from the date of issuance.
These new warrants are offered in a private placement and, along with the shares of common stock issuable upon their exercise, have not been registered under the Securities Act of 1933 or applicable state securities laws. Therefore, they may not be offered or sold in the United States without registration or an applicable exemption from registration requirements. The company has committed to filing a registration statement with the SEC covering the resale of the shares issuable upon exercise of the new warrants within 30 days.
This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The offering of these securities is not permitted in any jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
In other recent news, Innovative Eyewear Inc. has made significant strides in its market presence and financial strategy. The company recently announced the availability of its Lucyd Lyte frames on Target (NYSE:TGT).com, marking a significant expansion into one of America's largest retail platforms. Innovative Eyewear also announced a strategic partnership with augmented reality shopping developer Geenee Inc. to enhance the smart eyewear shopping experience.
In terms of financial maneuvers, the company expanded its common stock offering under an existing agreement with H.C. Wainwright & Co., potentially allowing it to raise capital flexibly. It also enacted a one-for-twenty reverse stock split of its common stock, reducing the total number of outstanding shares from approximately 27.89 million to about 1.39 million.
Innovative Eyewear also launched two significant stock offerings managed by H.C. Wainwright & Co., aiming to generate gross proceeds of approximately $2.5 million and $1.025 million respectively. These recent developments reflect Innovative Eyewear's ongoing efforts to solidify its position within the wearable tech industry.
InvestingPro Insights
In light of Innovative Eyewear's recent announcement regarding the exercise of warrants, investors may find the following InvestingPro Insights particularly timely:
The company's strong revenue growth is noteworthy, with a significant 186.54% increase over the last twelve months as of Q2 2024. This aligns with the InvestingPro Tips that analysts anticipate sales growth in the current year. Such a surge in revenue could be indicative of the company's potential to capitalize on its innovative products in the smart eyewear market.
Despite this revenue growth, Innovative Eyewear is not profitable over the last twelve months, as noted in both the InvestingPro Data, with a reported operating income margin of -531.2%, and the InvestingPro Tips. The company also has a negative gross profit margin of -2.46%, which may raise concerns about its cost structure and ability to convert sales into profits.
Investors should also be aware of the company's stock price volatility. With a 42.09% return over the last week, the stock shows significant short-term gains. However, it has experienced a substantial decline of 69.37% over the last three months. This volatility is reflected in an InvestingPro Tip that notes the stock price movements are quite volatile, which might be of interest to traders looking for short-term opportunities but could signal caution for long-term investors.
For those interested in exploring further, InvestingPro provides additional tips on Innovative Eyewear, Inc. (LUCY), which can be accessed at: https://www.investing.com/pro/LUCY
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