Smart for Life, Inc. has successfully completed a strategic financial transaction involving the exercise of existing warrants and the issuance of new warrants. On December 4, 2023, the company initially issued warrants for the purchase of 250,572 shares of common stock at $10.64 per share to accredited investors. As of the recent update, 183,370 of these warrants remained outstanding. On May 30, 2024, Smart for Life entered into inducement letters with the holders of these existing warrants, agreeing to a reduced exercise price of $4.25 per share, resulting in gross proceeds of $779,322.50. In exchange for the immediate cash exercise of these warrants, the company issued new warrants for the purchase of 550,110 shares of common stock. The transaction closed on June 3, 2024, with the new warrants exercisable for eighteen months...Show More

Smart for Life, Inc. has successfully completed a strategic financial transaction involving the exercise of existing warrants and the issuance of new warrants. On December 4, 2023, the company initially issued warrants for the purchase of 250,572 shares of common stock at $10.64 per share to accredited investors. As of the recent update, 183,370 of these warrants remained outstanding. On May 30, 2024, Smart for Life entered into inducement letters with the holders of these existing warrants, agreeing to a reduced exercise price of $4.25 per share, resulting in gross proceeds of $779,322.50. In exchange for the immediate cash exercise of these warrants, the company issued new warrants for the purchase of 550,110 shares of common stock. The transaction closed on June 3, 2024, with the new warrants exercisable for eighteen months at the same reduced price and with provisions for cashless exercise under certain conditions. The company has also committed to filing a registration statement for the resale of the shares underlying the new warrants by July 15, 2024. H.C. Wainwright & Co., LLC served as the financial advisor and warrant inducement agent for the transaction, receiving fees and reimbursement of expenses, while the company netted approximately $458,473. Additionally, Smart for Life issued Agent Warrants for the purchase of 13,753 shares of common stock at $5.3125 per share to designees of the Agent. This financial maneuver is part of Smart for Life's broader restructuring plans, which have improved its balance sheet, resulting in an estimated stockholders' equity of $6 million as of the report date.