Innovative Eyewear raises $4.8 million through warrant exercises

MIAMI - Innovative Eyewear, Inc. (NASDAQ:LUCY), a manufacturer of smart eyewear with a current market capitalization of $7.7 million, today closed the previously announced exercise of warrants that generated approximately $4.8 million in gross proceeds. According to InvestingPro analysis, the company maintains a strong liquidity position, holding more cash than debt on its balance sheet.

The company received about $2.2 million from the exercise of warrants to purchase 746,782 shares at $2.60 per share in a warrant inducement transaction. As part of this transaction, Innovative Eyewear issued new unregistered Series I warrants to purchase up to 2,240,346 shares of common stock, generating an additional $0.3 million. InvestingPro data shows the company’s revenue grew by 23% in the last twelve months, though it faces challenges with rapid cash burn.

The new Series I warrants have an exercise price of $2.60 per share and will expire 18 months after the effective date of the resale registration statement for the underlying shares.

H.C. Wainwright & Co. served as the exclusive placement agent for the offering.

Separately, the company reported receiving approximately $2.6 million over the past 30 days from investors exercising warrants to purchase 986,532 shares at $2.60 per share.

Innovative Eyewear plans to use the net proceeds for working capital and general corporate purposes, according to the press release statement.

The company manufactures ChatGPT-enabled smart eyewear under several brands including Lucyd, Nautica, Eddie Bauer, and Reebok. While analysts anticipate continued sales growth, InvestingPro subscribers have access to detailed financial health metrics and 8 additional key insights about the company’s performance and prospects.

The new Series I warrants were offered in a private placement and have not been registered under the Securities Act of 1933. The company has agreed to file a registration statement with the SEC within 30 days covering the resale of shares issuable upon exercise of these warrants.

In other recent news, Innovative Eyewear, Inc. has secured approximately $4.8 million through warrant exercises and a warrant inducement transaction. The company entered into agreements for the immediate exercise of outstanding warrants, generating around $2.2 million, with an additional $0.3 million from new Series I warrants. This capital is earmarked for working capital and general corporate purposes. Innovative Eyewear has also announced a partnership with Smartech Retail Group to showcase its Reebok Powered by Lucyd smart eyewear collection at a new retail location in New York City’s Times Square. This collaboration aims to enhance product exposure in high-traffic retail environments.

Additionally, Innovative Eyewear has expanded its presence in Canada through a partnership with Eye Recommend, a network of independent optometry clinics. This partnership will introduce the company’s smart eyewear to over 600 optical practices across Canada, supported by the recent Canadian Standards Association certification for their smart safety glasses. In another development, the company has launched Reebok Smart Eyewear, integrating voice-powered technology tailored for athletic and outdoor use. This product is now available on Lucyd.co and is expected to appear on Reebok.com and other retailers soon.

Innovative Eyewear’s global distribution strategy includes a partnership with MTB Mexico to introduce Reebok Smart Eyewear to the Latin American market. The company continues to position itself in the smart eyewear space with products that connect users to their digital lives safely and ergonomically.

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