Upexi closes $150 million convertible note offering backed by Solana

TAMPA - Upexi, Inc. (NASDAQ:UPXI), a consumer products company with a current market capitalization of $270 million and showing impressive recent momentum with a 45% gain in the past week according to InvestingPro, announced Thursday it has closed a $150 million private placement convertible note offering secured by Solana (SOL) cryptocurrency from institutional investors and qualified purchasers.

The convertible notes, which have a 2.0% interest rate payable quarterly and a fixed conversion price of $4.25 per share with a 24-month maturity, are collateralized by SOL provided by the note holders. Big Brain Holdings led the investment alongside other institutional investors. Based on InvestingPro data, the company maintains strong gross profit margins of 54.5%, though it currently operates with moderate debt levels.

This offering, combined with a previously disclosed $50 million private placement of common stock, brings the total gross proceeds to approximately $200 million before deducting placement agent fees and other expenses.

Following the transaction, Upexi has increased its Solana holdings to approximately 1.65 million SOL, more than doubling its previous balance of 735,692 SOL. The SOL underlying the note offering has become part of the company’s cryptocurrency treasury.

A.G.P./Alliance Global Partners served as the sole placement agent for the offering.

The securities were offered in a transaction not involving a public offering and have not been registered under the Securities Act of 1933. Accordingly, they may not be offered or sold in the United States except pursuant to an effective registration statement or applicable exemption from registration requirements.

Upexi specializes in the development, manufacturing, and distribution of consumer products and has expanded into cryptocurrency asset management, according to the company’s press release statement. InvestingPro analysis reveals the stock typically trades with high volatility and shows 13 additional key insights available to subscribers, including detailed valuation metrics and growth forecasts. A comprehensive Pro Research Report is available for this stock, offering deep-dive analysis among 1,400+ covered US equities.

In other recent news, Upexi, Inc. has completed a private placement equity offering, raising approximately $50 million in gross proceeds. The company sold over 12 million shares of common stock at $4.00 per share to various accredited investors, including CEO Allan Marshall, who bought shares at a slightly higher price. The funds raised are intended to cover placement agent fees, support general working capital needs, and further Upexi’s Solana treasury strategy. Additionally, Upexi plans to close a $150 million convertible notes offering backed by Solana cryptocurrency. This move is expected to more than double its Solana holdings, which stood at 735,692 SOL as of June. Upexi has also announced the approval for options trading on its common stock on the Nasdaq Options Market. This development is seen as a step to enhance the company’s market presence and liquidity. The company has undergone significant changes, including a strategic pivot toward cryptocurrency accumulation, which was marked by a registration statement allowing investors to sell common shares.

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