PIXY - ShiftPixy slumps 35% on pricing $3.1 million securities offering

2023-07-12 08:20:31 ET

• ShiftPixy ( NASDAQ: PIXY ) announced on Wednesday the pricing of public offering of 2.01 million shares of its common stock at $1.50 per share.

• The stock fell about 35% to $1.55 in premarket trade on Wednesday.

• Each unit consists of one share of common stock and one common warrant each exercisable for one share of common stock at an exercise price of $1.50 per share.

• The common warrants will be immediately exercisable and expire five years from the date of issuance.

• Each pre-funded warrant is immediately exercisable for one share of common stock at an exercise price of $0.0001, the purchase price for a pre-funded warrant and accompanying common warrants is $1.4999 and the pre-funded warrants do not expire until exercised.

• Gross proceeds from the offering are expected to be approximately $3.1 million.

• Underwriters are granted a 30-day option to purchase up to 3 million additional shares of common stock at the public offering price.

• The offering is expected to close on or about July 14, 2023, subject to customary closing conditions.

• The company intends to use the net proceeds from the offering for general corporate purposes, including working capital.

• In connection with the offering, the company has reached an agreement with existing investors of the company who took part in this offering to lower the exercise price of outstanding warrants to buy up to 1.19 million shares of common stock overall, issued in the company's previous offerings in 2020 and 2022 to $1.50 per share, starting after the offering's closing. The other conditions of the prior warrants remains same.

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