Smith Micro announces $2.65 million in financing through dual offerings

PITTSBURGH - Smith Micro Software, Inc. (NASDAQ:SMSI) has entered into definitive agreements for two concurrent offerings expected to raise approximately $2.65 million in gross proceeds, according to a press release statement. The micro-cap company, currently valued at just $14.27 million, is trading at $0.66 per share, which InvestingPro analysis suggests is undervalued compared to its Fair Value.

The financing consists of a $1.15 million registered offering with institutional and accredited investors and a $1.5 million private placement with the company's chief executive officer.

The registered offering includes 1,714,373 shares of common stock with accompanying unregistered warrants at $0.6708 per share. Each warrant will be exercisable for one share at the same price, becoming exercisable six months after issuance and expiring five years later.

Concurrently, the CEO committed to purchasing 2,236,136 unregistered shares with warrants at the same price of $0.6708 per share through a private placement. These warrants will become exercisable following stockholder approval.

Both transactions are expected to close on or about November 6, subject to customary closing conditions.

Roth Capital Partners served as the exclusive placement agent for the registered offering, with Buchanan Ingersoll & Rooney PC providing legal counsel to Smith Micro.

The company intends to use the net proceeds for working capital and general corporate purposes.

The registered offering is being made pursuant to a shelf registration statement filed with the Securities and Exchange Commission. The private placement and warrants were offered under exemptions from registration requirements.

Smith Micro develops mobile software solutions for wireless service providers, focusing on digital family lifestyle products and voice messaging capabilities.

In other recent news, Smith Micro Software reported a 14% year-over-year decline in revenue for the second quarter of 2025, totaling $4.4 million. Despite the revenue dip, the company emphasized its strategic focus on its SafePath platform, targeting growth in the family and senior safety markets. Additionally, shareholders approved two proposals at a special meeting, including the issuance of shares of common stock underlying warrants, as per a Securities Purchase Agreement. This approval allows Smith Micro to issue shares that may equal or exceed 20% of the company's outstanding common stock, in compliance with Nasdaq listing rules. In another development, Roth/MKM lowered its price target for Smith Micro Software to $4.00 from $5.50, while maintaining a Buy rating. The firm noted that the company's results were at the lower end of its guidance range, consistent with previous quarters. These recent developments provide investors with key insights into Smith Micro Software's financial and strategic positioning.

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