MIAMI - Innovative Eyewear, Inc. (Nasdaq: LUCY; LUCYW), a developer and marketer of smart eyewear, disclosed on Monday its plans for a registered direct offering and a concurrent private placement. The company intends to issue 4,200,822 shares of common stock at a price of $0.244 per share, aiming to raise gross proceeds of approximately $1.025 million.
The offering, priced at-the-market under Nasdaq rules, is expected to close around May 1, 2024, subject to standard closing conditions. In a simultaneous private placement, Innovative Eyewear will issue unregistered warrants to purchase an equivalent number of shares, also at $0.244 per share. These warrants will become exercisable upon stockholder approval and will remain valid for five years thereafter.
H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering. The company has stated that the net proceeds will be used for working capital and general corporate purposes.
The shares in this direct offering are being issued according to a shelf registration statement filed with the Securities and Exchange Commission (SEC) on February 7, 2024, and declared effective on March 29, 2024. Prospective investors can obtain the prospectus supplement, once available, from H.C. Wainwright & Co.
The unregistered warrants and the shares of common stock underlying them have not been registered under the Securities Act of 1933 and will be subject to restrictions on resale in the U.S., pending either registration or an exemption from such requirements.
Innovative Eyewear's product line includes Bluetooth audio glasses under various brand names, designed to provide a seamless connection to digital devices. The company's forward-looking statements regarding the offering and the anticipated use of proceeds are based on current expectations and are subject to risks and uncertainties that could affect future results.
This news article is based on a press release statement from Innovative Eyewear, Inc. and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
InvestingPro Insights
In light of Innovative Eyewear's recent announcement of a registered direct offering and concurrent private placement, data from InvestingPro provides insights into the company's financial health and market performance.
Innovative Eyewear, trading under the ticker LUCY, has a market capitalization of approximately $3.23 million, signaling a relatively small player within its sector. Despite significant revenue growth over the last twelve months, with an increase of 74.67%, the company's gross profit margin has been negative at -10.35%, reflecting cost management challenges.
InvestingPro Tips suggest that while analysts anticipate sales growth in the current year, they do not expect the company to be profitable within this period. Moreover, LUCY's stock is trading near its 52-week low, which could indicate potential undervaluation or reflect investor concerns about the company's future prospects.
Investors considering participating in Innovative Eyewear's offering may also note that the company's price per share of $0.24 is below the InvestingPro Fair Value estimate of $0.34. This discrepancy might offer an opportunity for value, although it is essential to consider the full context of the company's financial position and market trends.
For those seeking more comprehensive analysis and additional InvestingPro Tips, there are a total of 13 tips available on the InvestingPro platform for Innovative Eyewear, which can be accessed by visiting https://www.investing.com/pro/LUCY. Readers of this article can use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, helping them make more informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.