Owlet (NYSE:OWLT) announced today that it entered into agreements for a private placement worth proceeds of approximately $9 million.
Lehi, Utah-based Owlet’s placement relates to the sale of shares of its newly issued Series B convertible preferred stock and warrants to purchase Class A common stock. The conversion ratio for the stock and warrants reflects a 25% premium to the company’s most recent closing price on Feb. 23.
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Owlet expects the transaction to close on Feb. 28, subject to customary closing conditions.
Under the terms of the agreements, Owlet plans to issue shares of Series B stock convertible into approximately 1.2 million shares of common stock. Each purchaser also received a warrant to purchase 150% of the number of shares of common stock into which their Series B stock is convertible. Owlet priced the warrants at $7.7125 per share. The holder can exercise them at any time on or after the issuance date for five years.
“As a pioneer of smart infant monitoring, Owlet has built momentum on the back of our two new FDA clearances. This capital is important in supporting that momentum,” said Kurt Workman, Owlet co-founder and CEO. “The company now has a strong foundation with our new medical devices, expanded distribution and a brand that resonates with parents. I’m grateful for the investors who share our vision and passion for improving pediatric health.
“I’m proud of the team’s commitment to operating towards achieving a profitable business. We ended the year with over $16 million in cash and cash equivalents and this well-timed capital supports the opportunities ahead for our business as we globally commercialize our two new medical devices.”
