Why Owlet Shares Are Exploding Higher Tuesday

Owlet Inc OWLT shares are trading higher by 34.10% to $0.46 Tuesday morning after the company announced $30 million private placement financing.

What Else?

Owlet says the company has issued shares of Series A preferred stock that are convertible into approximately 61.2 million shares of common stock. Each purchaser will also receive a warrant to purchase 180% of the number of shares of common stock into which their Series A preferred stock is convertible.

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The warrants meanwhile will have a per share exercise price of $0.333 and will be exercisable by the holder at any time on or after the issuance date for a period of five years.

The transaction closed on February 17 and involved participation from new and existing investors.

Owlet says the company intends to utilize the net proceeds for general corporate purposes and to fund its strategic initiatives.

According to data from Benzinga Pro, OWLT has a 52-week high of $5.35 and a 52-week low of $0.35.