SpringBig Stock Plummets On Pricing Of $4M Public Offering

SpringBig Holdings, Inc. SBIG announced the pricing of public offering of 13 million shares of its common stock at an at-the-market price of $0.3037.

The closing of the offering is expected to occur on or about May 31, 2023, subject to the satisfaction of customary closing conditions.

Roth Capital Partners is acting as sole placement agent for the offering.

The gross cash proceeds to the company from the offering are expected to be approximately $3.0 million, before deducting the placement agent’s fees and other offering expenses payable by springbig. Additionally, approximately $1.0 million of the company’s existing senior secured convertible note, held by L1 Capital Global Opportunities will be cancelled in exchange for shares in the offering at the offering price. The company intends to use the net proceeds from this offering for working capital and general corporate purposes, which includes the repayment of $750,000 of principal amount of the note to L1 Capital upon the closing of the offering.

“We are delighted to have strengthened our balance sheet with this public offering and are appreciative of the willingness of L1 Capital to support the future growth of springbig,” stated Paul Sykes, CFO of springbig. “We continue to make significant progress along our path to profitability and now have the capital resources to continue to develop our business.”

Price Action

SpringBig shares were trading 22.49% lower at $0.2354 per share at the time of writing Friday morning.

Photo: Benzinga edit with photos by Stefan Balaz on Shutterstock and Peter Pike on Pixabay

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Cannabis rescheduling seems to be right around the corner