Shares of Sharps Technology took a sharp plunge, dropping 32% to 56 cents, following the company's entrance into a definitive agreement with institutional investors. This agreement involves the purchase and sale of 4.4 million shares and pre-funded warrants in a registered direct offering.
Earlier in the session, the stock hit its lowest point in the past 52 weeks, reaching 51 cents. It has witnessed a significant decline of 47% over the past year.
Each share's purchase price has been set at 64 cents, while the purchase price for the pre-funded warrants is the same, except for a $0.001 per share exercise price deduction.
Additionally, as part of a concurrent private placement, Sharps Technology will be issuing units to these investors, allowing them to purchase pre-funded warrants for up to 2.6 million shares and warrants to buy 8.75 million shares. The exercise price for these warrants is set at 64 cents per share.
Upon completion of both transactions, the company is projected to generate proceeds amounting to $5.6 million. The closing of these deals is expected to take place on or around Friday.
Sharps Technology anticipates utilizing the funds raised from this offering to support working capital and meet general corporate objectives.
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