Smart for Life Shares Drop 20% After Direct Offering Prices

Smart for Life Shares Drop 20% After Direct Offering Prices

Smart for Life shares were down 20% to $2.68 after the company said it has entered into a definitive agreement for the purchase and sale of 585,000 shares at $2.71 a share in a registered direct offering priced at the market under Nasdaq rules.

The stock closed Wednesday’s session up 44% after the company said it had executed a strategic agreement with CloudKitchens for its new line of high-protein ice cream bars.

In a concurrent private placement, the Miami-based health and wellness company is also issuing unregistered purchase warrants to buy up to 585,000 shares that have an exercise price of $2.59 a share and are immediately exercisable for a period of 5 1/2 years following issuance.

The registered direct offering and the concurrent private placement are expected to close on or about Monday with proceeds of up to $1.58 million.

The company intends to use the proceeds from the offerings for working capital and other general corporate purposes.

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