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TAMPA - Upexi, Inc. (NASDAQ:UPXI), whose stock has surged over 56% in the past week according to InvestingPro data, announced Friday it has secured approximately $50 million through an equity offering and plans to enter into agreements for an additional $150 million in convertible notes backed by Solana cryptocurrency. The company, which currently trades at a market capitalization of $186 million, has shown significant price volatility in recent months.
The consumer products brand owner said it has entered into securities purchase agreements with accredited investors, qualified purchasers and institutional investors for 12,457,186 shares of common stock at $4.00 per share, with company CEO Allan Marshall participating at $4.94 per share. InvestingPro analysis shows the company maintains impressive gross profit margins of 54.5%, though it currently operates with short-term obligations exceeding liquid assets.
Concurrent with the equity transaction, Upexi has arranged a separate $150 million convertible note offering with institutional investors, including lead investor Big Brain Holdings. These notes are collateralized by Solana cryptocurrency (SOL), carry a 2.0% interest rate payable quarterly, and feature a fixed conversion price of $4.25 per share with a 24-month maturity.
The company expects to close the equity offering around July 14 and the note offering by July 16, subject to customary closing conditions.
Upon completion of these transactions, Upexi anticipates holding approximately 1.65 million SOL, more than doubling its previously disclosed balance of 735,692 SOL. The company plans to use a portion of the equity offering proceeds for existing operations and working capital, with the remainder allocated to expanding its Solana treasury.
A.G.P./Alliance Global Partners is serving as the sole placement agent for both offerings.
The securities in these transactions have not been registered under the Securities Act of 1933 and are being offered in transactions not involving a public offering, according to the company’s press release statement.
Upexi specializes in consumer products development and manufacturing, and has recently expanded into cryptocurrency asset management. InvestingPro subscribers have access to 16 additional ProTips and comprehensive analysis about UPXI, including detailed insights about the company’s financial health, which is currently rated as weak with an overall score of 1.13 out of 5. Get the full picture with InvestingPro’s detailed research report, available as part of the platform’s coverage of over 1,400 US stocks.
In other recent news, Upexi, Inc. reported an 8.2% increase in its Solana holdings during June, with its treasury now holding 735,692 SOL valued at $113.8 million. The company also made headlines with a significant purchase of 77,879 SOL tokens for $11.8 million, bringing its total holdings to 679,677 SOL, which has appreciated by $24.5 million. Upexi’s strategic pivot towards cryptocurrency was further highlighted by a partnership with GMI Digital to enhance its engagement with crypto-native audiences. Additionally, Upexi’s options have begun trading on the Nasdaq Options Market, which CEO Allan Marshall noted as a sign of the company’s growing market presence. The company also filed a registration statement allowing investors to sell shares, a move that CEO Marshall explained as standard procedure, though it led to concerns about potential selling pressure. Upexi’s efforts to increase visibility include listing options on Nasdaq and joining Webull’s Corporate Connect Service platform. The company participated in several investor events and announced plans to tokenize its equity in partnership with Superstate. These developments reflect Upexi’s ongoing strategy to integrate cryptocurrency into its business model while maintaining its core operations in consumer products.
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