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SOBRsafe Completing Strategic Refinance of Maturing Debt
Further Stabilizing Financial Position, Accelerating Product EnhancementsDENVER, CO / ACCESSWIRE / March 7, 2023 / SOBR Safe, Inc. (NASDAQ:SOBR) (SOBRsafe™),
About this update from Sobr Safe, Inc.
[{"type":"text","content":"Further Stabilizing Financial Position, Accelerating Product EnhancementsDENVER, CO / ACCESSWIRE / March 7, 2023 / SOBR Safe, Inc. (NASDAQ:SOBR) (SOBRsafe™), providers of industry-leading alcohol detection solutions, today announced it has signed a securities purchase agreement to issue to certain investors $3.5 million aggregate principal amount of convertible senior notes due 2025 (the \"Notes\") and accompanying warrants (the \"Warrants\") to purchase approximately 0.38 million shares of common stock. The Company intends to replace approximately $2.5 million in existing maturing debt.Each of the Notes shall include an original issue discount of 15%. The Notes will mature on March 9, 2025 unless earlier converted (only upon the satisfaction of certain conditions). The initial conversion price will be $2.28 per share of common stock, subject to adjustment upon the occurrence of specified events.The Warrants will be exercisable immediately upon the date of issuance and have an initial exercise price of $2.52. The Warrants will expire five years from the date of issuance.The sale of the Notes is expected to close on March 9, 2023, subject to customary closing conditions.\"This minimally dilutive financing is consistent with our long-term capital markets strategy, and allows us to ‘pull-forward' technology enhancements previously considered for 2024,\" said Chairman & CEO David Gandini. \"With this accelerated pace, we can be even more opportunistic in executing our sales, integration and licensing strategy - while further extending our financial runway.\"Aegis Capital Corp. is acting as exclusive placement agent for the Offering.The securities described above are being sold in a private placement and have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (the \"SEC\") or an applicable exemption from such registration requirements. The securities were offered only to accredited investors. Pursuant to a registration rights agreement with the investors, the Company has agreed to file one or more registration statements with the SEC covering the resale of the common stock issuable upon conversion of the Notes and exercise of the Warrants.This press release shall not constitute an offer to sell or the sol...