Sharps Technology, Inc. (the “Company”) (NASDAQ: “STSS” and “STSSW”), an innovative medical device and pharmaceutical packaging company offering patented, best-in-class syringe products, today announced that it has entered into a definitive agreement with institutional investors for the purchase and sale of 4,418,521 shares of common stock and pre-funded warrants to acquire common stock in a registered direct offering. The purchase price of each share is $0.64. The purchase price for the pre-funded warrants is identical to the purchase price for shares, less the exercise price of $0.001 per share.
In a concurrent private placement, the Company also agreed to issue to the same investors units to purchase pre-funded warrants to purchase up to 2,581,479 shares of common stock and common warrants to purchase 8,750,000 shares of common stock at an exercise price of $0.64 per share. The purchase price for each unit will be $0.80, with an exercise price per pre-funded warrant of $0.001 per share. The private placement warrants will be exercisable immediately subject to registration and will have a 5.5-year term from the initial exercise date. Aggregate gross proceeds to the Company of both transactions are expected to be approximately $5.6 million. The transactions are expected to close on or about September 29, 2023, subject to the satisfaction of customary closing conditions.
The entire transaction has been priced at the market under Nasdaq rules.
Sharps expects to use the net proceeds from the offering for working capital and general corporate purposes.
