Smart for Life, Inc. SMFL shares are trading lower on Tuesday afternoon after the company announced an agreement to exercise warrants for $4.5 million in gross proceeds.
What To Know: The agreement will allow several accredited investors to exercise certain outstanding warrants to purchase up to an aggregate of 3,513,750 shares of the company's common stock.
The gross proceeds are expected to be approximately $4.5 million, prior to deducting placement agent fees and estimated offering expenses.
The exercising holders will receive new unregistered warrants to purchase shares of common stock. The new warrants will be exercisable into an aggregate of up to 7,027,500 shares.
The company plans to use the net proceeds from the offering for working capital and other general corporate purposes.
Smart For Life offers a broad spectrum of nutritional and related products with an emphasis on health and wellness.
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SMFL Price Action: Shares of SMFL were down 37.8% at $1.35 at the time of publication, according to Benzinga Pro.
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