- ShiftPixy (NASDAQ:PIXY) trades 0.9% down premarket after entering into a securities purchase agreement with a large institutional investor for a private placement of common stock and warrants expected to result in gross proceeds of ~$12M.
- The company has agreed to sell 2.32M shares with warrants to purchase shares and 2.63M pre-funded warrants with each pre-funded warrant exercisable for one share of common stock.
- Each share of common stock and accompanying common warrant are being sold together at a combined offering price of $2.425 and each pre-funded warrant and accompanying common warrant are being sold together at a combined offering price of $2.4249.
- Net proceeds to be used for general corporate purposes, including working capital, operating expenses, and capital expenditures, as well as for certain expenses.
- Private placement is expected to close on or about May 17.