Why Is Smart for Life (SMFL) Stock Down 37% Today?


  • Smart for Life (SMFL) stock is falling after reaching an agreement with investors.
  • This has a group of warrant holders agreeing to exercise their warrants at a reduced price.
  • It also comes with a deal that grants them additional warrants for SMFL stock.
SMFL Stock - Why Is Smart for Life (SMFL) Stock Down 37% Today?

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Smart for Life (NASDAQ:SMFL) stock is falling on Friday after the company announced the exercise of $1.5 million worth of warrants for SMFL shares.

Smart for Life notes that it reached an agreement with certain accredited investors to redeem their warrants for shares of SMFL stock. The warrants are for 877,001 shares and have exercise prices ranging from $19.53 and $27.72 per share. However, they are being redeemed for a lowered exercise price of $1.77 per share.

To go along with this, the investors exercising warrants have also been awarded new unregistered warrants. These warrants are for a total of 1.75 million shares of SMFL stock. They also have an exercise price of $1.52 per share with a term of five and a half years.

Investors will note that Smart for Life already has plans for the $1.5 million in gross proceeds from the warrant exercise. The company intends to use these funds for “working capital and other general corporate purposes.”

SMFL Stock Movement Today

With today’s news comes some 340,000 shares of SMFL stock changing hands. That’s a strong start to the day, considering its daily average trading volume is roughly 500,000 shares.

SMFL stock is down 36.5% as of Friday morning. The company’s shares are also down 98.6% since the start of the year.

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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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