Summary by Futu AI
Smart for Life, Inc. has entered into a material definitive agreement with certain accredited investors holding existing warrants for the company's common stock. On May 30, 2024, Smart for Life issued inducement letters to these investors, who agreed to exercise their warrants for 250,572 shares at a reduced price of $4.25 per share, resulting in gross proceeds of $779,322.50. In return, the company will issue new warrants for 550,110 shares at the same exercise price, which will be immediately exercisable for eighteen months. The transaction is set to close on June 3, 2024, with customary closing conditions. Smart for Life also committed to filing a registration statement for the resale of the shares underlying the new warrants by July 15, 2024, and to make it effective within 30 to 60 days. For 15 days post-closing, the company will not issue any new common stock or securities convertible into common stock, nor will it file or amend any registration statements, with the exception of the one related to this transaction.
