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NEW YORK - Sharps Technology, Inc. (NASDAQ: STSS), a medical device and pharmaceutical packaging company known for its smart-safety syringe products, has announced the pricing of its public offering aimed at raising approximately $20 million. According to InvestingPro data, the company, currently valued at just $2.99 million, has been facing significant cash burn challenges and trades near its 52-week low of $1.38. Analysis suggests the stock may be undervalued at current levels. The offering, underwritten on a firm commitment basis, includes 14,285,714 units, each comprising a share of common stock or a pre-funded warrant, and accompanying warrants to purchase additional shares.
The public offering price is set at $1.40 per common unit, with pre-funded units priced at $1.3999, reflecting the common unit price minus the pre-funded warrant exercise price of $0.0001. These pre-funded warrants are immediately exercisable and will remain so until fully exercised. With the stock showing a -79.82% return over the past year and significant volatility, InvestingPro subscribers can access 13 additional key insights about STSS's financial health and market position.
Each unit also contains a Series A and Series B Registered Common Warrant, both with an exercise price of $1.75 per share. The Series A Warrants are exercisable immediately and will expire five years after stockholder approval, while the Series B Warrants can be exercised immediately with an expiration date two and a half years post-approval. Adjustments to the number of securities issued under these warrants are detailed in the upcoming Form 8-K report.
To address potential over-allotments, Sharps Technology has granted Aegis Capital Corp., the sole book-running manager for the offering, a 45-day option to purchase up to an additional 15% of the shares and warrants sold.
The proceeds from this offering, which is expected to close around January 29, 2025, subject to customary closing conditions, are intended for general corporate purposes and working capital. This capital raise comes at a crucial time, as InvestingPro analysis shows the company reported negative EBITDA of -$7.89 million in the last twelve months, highlighting the importance of strengthening its financial position.
Investors can look forward to a final prospectus supplement and accompanying prospectus detailing the offering terms, which will be filed with the U.S. Securities and Exchange Commission and available on their website.
This press release is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy in any state or jurisdiction where such an offer would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
In other recent news, Sharps Technology Inc. reported significant financial activities and governance decisions. The company secured a $484,438 stock sale agreement with institutional investors, selling 248,430 shares at $1.95 per share. Additionally, Sharps Technology closed a $3.5 million secured bridge loan financing agreement, with Aegis Capital Corp. acting as the exclusive placement agent.
The company's annual shareholder meeting led to the election of six directors to the Board and the ratification of PKF O’Connor Davies LLP as the accounting firm for the fiscal year ending December 31, 2024. Shareholders also approved a new equity incentive plan and an increase in authorized common stock shares from 100 million to 500 million.
Further, Sharps Technology amended its bylaws to require a minimum of one-third of stockholders to be present for the transaction of any business at stockholder meetings. The Board of Directors has been granted the authority to execute a reverse stock split of up to 1-for-8 within a year. These are recent developments that could potentially impact the company's future direction.
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