Sharps Technology enters equity sales agreement for up to $236.6 million

Sharps Technology Inc. (NASDAQ:STSS) announced Tuesday it has entered into a Controlled Equity Offering Sales Agreement with Cantor Fitzgerald & Co. and Aegis Capital Corp. Under the agreement, Sharps Technology may offer and sell shares of its common stock, at its discretion, for an aggregate sales price of up to $236,605,575. The offering comes as the company’s stock has shown significant volatility, with a 39% gain in the past week despite an 84% decline over the previous six months.

According to the press release statement, Cantor Fitzgerald will act as principal and the sole designated sales agent, using commercially reasonable efforts to sell the shares based on Sharps Technology’s instructions. The agreement entitles the agents to a commission of 3.0% of the gross proceeds from each sale.

Sales of the shares, if any, may be conducted as “at the market offerings” under Rule 415 of the Securities Act of 1933 or by other methods permitted by law. Sharps Technology is not obligated to sell any shares under the agreement and retains the right to suspend or terminate the offering at any time.

The shares to be sold under the agreement will be issued pursuant to the company’s shelf registration statements on Form S-3, which were declared effective by the Securities and Exchange Commission on September 5, 2023, and supplemented by a prospectus dated Tuesday.

The legal opinion regarding the validity of the shares to be issued in the offering has been provided by Sichenzia Ross Ference Carmel LLP.

This information is based on a press release statement and details disclosed in a recent SEC filing. InvestingPro analysis reveals the company maintains a healthy current ratio of 4.35, indicating strong short-term liquidity despite operational challenges. Subscribers can access 14 additional ProTips and comprehensive financial metrics to better evaluate this investment opportunity.

In other recent news, Sharps Technology Inc. has made significant strides with its financial and operational activities. The company announced a major private placement exceeding $400 million, aimed at establishing a substantial Solana digital asset treasury strategy. This transaction involves the sale of common stock and warrants, with the deal expected to close soon. Additionally, Sharps Technology has begun its first commercial shipments of smart-safety syringe products, including the SecureGard™ and SoloGard™ lines. These shipments are under a $50 million supply agreement, marking the company’s transition to generating commercial revenue.

The SoloGard syringes are part of a five-year contract to supply up to 500 million units, with the first $400,000 purchase order already fulfilled. In leadership changes, the Board of Directors appointed Paul Danner as executive chairman, replacing Soren Christiansen. Timothy Ruemler has been named chairman of the Audit Committee, while Christiansen takes Danner’s former seat on the Compensation Committee. These recent developments highlight Sharps Technology’s strategic and operational advancements.

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