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.
There are even more stock market stories traders will want to read about below!
We have all of the hottest stock market news ready to go on Friday! With that comes the latest news concerning Polar Power (NASDAQ:POLA) stock, NexImmune (NASDAQ:NEXI) stock and Green Giant (NASDAQ:GGE) stock today. All of that is available at the following links!
More Stock Market News for Friday
- Why Is Polar Power (POLA) Stock Down 51% Today?
- Why Is NexImmune (NEXI) Stock Up 353% Today?
- Why Is Green Giant (GGE) Stock Up 81% Today?
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
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.
