Cannabis Marketing Platform SpringBig Secures Major Financial Boost Via Equity Offering, Where Will The Funds Go?

SpringBig Holdings, Inc. SBIG, a provider of SaaS-based marketing solutions, consumer mobile app experiences, and omnichannel loyalty programs to the cannabis industry, announced on Thursday the closing of its $4 million public equity offering.

The equity offering, for which Roth Capital Partners acted as the sole placement agent, raised gross cash proceeds before deducting the placement agent’s fees and other offering expenses of approximately $3 million. 

 In addition, roughly $1 million of the company’s existing senior secured convertible note was canceled in exchange for shares in the offering at the offering price.

Jeffrey Harris, CEO and chairman of the Boca Raton, Florida-based company, said the move results in a stronger balance sheet and “adequate capital to fund our growth initiatives in the future and to beyond the point of generating positive operating cash flow.”

Following the completion of the public offering and payment of $750,000 to reduce further the outstanding principal, the amount remaining outstanding on the company’s senior secured convertible note has now reduced to $6 million, with $0.5 million repayable during the remainder of the current year, and the balance repayable in roughly equal payments over a fifteen-month period extending to March 2025.

Q2 Financial Projections

The company expects results for the second quarter of 2023 to align with previously issued guidance, calling for revenue from $7.3 million to $7.6 million, representing 15% year-on-year growth at the mid-point.

Adjusted EBITDA loss is expected to range between $0.9 million to $1.2 million, representing further improvement compared with the $1.3 million adjusted EBITDA loss reported in the first quarter.

SBIG Price Action

SpringBig’s shares traded 1.00% higher at $0.3129 per share at the time of writing on Thursday.

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