How are energy investors positioned?
PITTSBURGH - Smith Micro Software, Inc. (NASDAQ:SMSI), a mobile solutions provider with a current market capitalization of $21.94 million, has entered into a definitive agreement with institutional and accredited investors for the issuance of 1,612,903 registered shares of common stock at $0.93 per share, according to a press release statement. The stock has shown strong momentum recently, gaining over 21% in the past week.
The offering includes accompanying unregistered warrants that will allow holders to purchase up to an additional 1,612,903 shares at an exercise price of $1.20 per share. The warrants will be immediately exercisable and will expire five years after issuance.
The combined registered offering and concurrent private placement is expected to generate approximately $1.5 million in gross proceeds before fees and expenses. Smith Micro plans to use the funds for working capital and general corporate purposes.
The transaction is expected to close by July 18, 2025, subject to customary closing conditions.
Chardan served as financial advisor to Smith Micro for the transaction, with Buchanan Ingersoll & Rooney PC providing legal counsel to the company. Haynes and Boone, LLP served as legal counsel to the investors.
The shares are being offered under a shelf registration statement on Form S-3 that was declared effective by the Securities and Exchange Commission on May 16, 2025. The warrants are being sold in a transaction exempt from registration requirements under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D.
Smith Micro Software develops mobile experience solutions for wireless service providers, offering digital family lifestyle solutions and voice messaging capabilities. According to InvestingPro analysis, the stock appears undervalued at current levels, with multiple additional insights available to subscribers, including 10+ exclusive ProTips and comprehensive financial health metrics. Get the full picture with InvestingPro’s detailed research report, part of its coverage of over 1,400 US stocks.
In other recent news, Smith Micro Software reported a 20% decline in revenue for Q1 2025 compared to the same period in 2024. Despite this, the company achieved an improved gross margin of 73%, up from 66% the previous year. The company also completed the sale of its ViewSpot platform, allowing it to focus on its SafePath family safety solutions. Smith Micro appointed Tim Huffmyer as Chief Operating Officer and Chief Financial Officer, marking his return to the company after serving as CFO at Urgent.ly Inc. Additionally, the company held its 2025 Annual Meeting of Stockholders, where key proposals were approved, including the election of two directors and the amendment of equity incentive and stock purchase plans. The appointment of SingerLewak LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was also ratified. In a strategic move, Smith Micro is gearing up for the release of SafePath 8, which will feature AI-powered safety enhancements. The company projects Q2 2025 revenue to be between $4.4 million and $4.8 million, with expectations of meaningful product launches in Q3.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.