Upexi closes $50 million private placement equity offering

TAMPA, Fla. - Upexi, Inc. (NASDAQ:UPXI), which has seen its stock surge over 65% in the past six months and currently trades above InvestingPro’s Fair Value estimate, announced Tuesday it has closed a private placement equity offering, raising approximately $50 million in gross proceeds before deducting fees and expenses.

The consumer products company, which maintains impressive gross profit margins of 54%, sold 12,457,186 shares of common stock at $4.00 per share to accredited investors, qualified purchasers and institutional investors. The company’s CEO Allan Marshall and Director Gene Salkind also participated in the offering, purchasing shares at $4.94 per share.

Upexi said it plans to use the proceeds to cover placement agent fees and offering expenses, support general working capital needs, and allocate the remaining funds to advance its Solana treasury strategy.

The company also stated it anticipates closing its previously disclosed $150 million convertible notes offering in exchange for Solana on or about July 16.

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

The securities sold in this private placement have not been registered under the Securities Act of 1933 and 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 recently expanded into cryptocurrency asset management through a cryptocurrency portfolio. InvestingPro analysis reveals the company demonstrates high shareholder yield despite operating with moderate debt levels. Subscribers can access 14 additional ProTips and comprehensive financial metrics through the Pro Research Report.

The information in this article is based on a company press release statement.

In other recent news, Upexi, Inc. has announced securing approximately $50 million through an equity offering, with plans to further raise $150 million via convertible notes backed by Solana cryptocurrency. This move is aimed at expanding its Solana treasury and supporting existing operations. Upexi also reported an 8.2% increase in its Solana holdings during June, bringing its total to 735,692 SOL, valued at $113.8 million as of the end of the month. Additionally, the company has partnered with GMI Digital to enhance its cryptocurrency marketing strategy, focusing on its "Solana-first strategy."

In a significant development, Upexi’s options have begun trading on the Nasdaq Options Market, providing investors with more instruments for risk management and investment. The company has also filed a registration statement with the SEC, allowing investors to sell their shares, which has raised concerns about potential dilution. Despite this, Upexi CEO Allan Marshall clarified that the registration does not necessarily indicate immediate selling intentions. These developments reflect Upexi’s ongoing strategic shift towards cryptocurrency, aiming to increase visibility and capital in an accretive manner for shareholders.

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