NEW YORK - Sharps Technology, Inc. (NASDAQ: STSS), a medical device and pharmaceutical packaging company, has closed a $3.5 million secured bridge loan financing. The transaction, completed today, involved the sale of securities to accredited investors, combining secured notes and shares of common stock.
The bridge financing specifically entailed the sale of approximately $4,375,000 in principal amount of secured notes and 5,700,006 shares of common stock, with no pre-funded warrants involved. For each $1,000 invested, purchasers received $1,250 in aggregate principal amount of the notes and 1,628.57 shares of common stock. The gross proceeds to Sharps Technology from this private placement were approximately $3.5 million before deductions for fees and expenses.
The company has stated that it intends to use the net proceeds from this offering, along with its existing cash reserves, for general corporate purposes and working capital. Aegis Capital Corp. served as the exclusive placement agent for the private placement, while Sichenzia Ross Ference Carmel LLP and Kaufman & Canoles, P.C. acted as legal counsels to the company and Aegis Capital Corp., respectively.
The securities sold through this bridge financing have not been registered under the Securities Act of 1933 or state securities laws and were offered only to accredited investors. In line with a registration rights agreement with the investors, Sharps Technology has committed to filing one or more registration statements with the SEC for the resale of the common stock.
Sharps Technology is known for its patented smart-safety syringe products, which include ultra-low waste capabilities and safety features. The company operates a manufacturing facility in Hungary and is in partnership with Nephron Pharmaceuticals to expand manufacturing in the U.S.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction where such offer or sale would be unlawful. The information is based on a press release statement.
In other recent news, Sharps Technology Inc. has secured a $3.5 million bridge loan financing agreement, selling securities that include secured notes and common stock shares or pre-funded warrants. The company plans to use the net proceeds from this offering, along with its existing cash, for general corporate purposes and to increase working capital. Aegis Capital Corp. has been appointed as the exclusive placement agent for the private placement.
In addition to the financing agreement, Sharps Technology has made strategic changes to its corporate structure. Shareholders have approved an increase in authorized common stock shares from 100 million to 500 million, potentially allowing the company to raise capital through future stock issuances. Furthermore, the Board of Directors has been given the authority to execute a reverse stock split of up to 1-for-8 within a year, aimed at increasing the per-share price of the company's common stock.
In the face of potential delisting from NASDAQ due to non-compliance with listing standards, Sharps Technology has expressed its intention to file a request for an appeal hearing before the imposed deadline. These recent developments reflect the company's strategic steps as it continues to navigate the medical and surgical device market.
InvestingPro Insights
Amidst Sharps Technology, Inc.'s (NASDAQ: STSS) recent bridge loan financing, a deeper look into the company's financial health and stock performance reveals critical insights. With a market capitalization of $4.94 million, Sharps Technology is navigating through challenging financial waters, as indicated by its negative P/E ratio of -0.62, suggesting that the company is not currently profitable.
InvestingPro data shows that Sharps Technology's stock has experienced a significant downturn, with a one-week price total return of -21.45% and a staggering one-year price total return of -69.07%. This aligns with the InvestingPro Tip that the stock has taken a substantial hit over the last week and has fared poorly over the past month. Furthermore, the company's cash burn rate is a point of concern, as highlighted by another InvestingPro Tip indicating that Sharps Technology is quickly burning through cash, which could have implications for its operational sustainability without additional funding or revenue streams.
While the company holds more cash than debt, which is generally a positive sign for financial stability, the InvestingPro Tips suggest caution due to the stock being in oversold territory and the fact that Sharps Technology does not pay a dividend to shareholders. These factors could influence investor decisions, especially in light of the company's recent financing activities.
Investors interested in a more comprehensive analysis will find additional InvestingPro Tips on Sharps Technology, which could provide a more nuanced understanding of the company's financial position and stock performance. For a deeper dive into Sharps Technology's financial metrics and future outlook, visit https://www.investing.com/pro/STSS for more information.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.