Business
Stran & Company, Inc. Announces Closing of a $21.7 Million Private Placement
Quincy, Mass, Dec. 10, 2021 (GLOBE NEWSWIRE) -- Stran & Company, Inc. ("Stran" or the "Company") (NASDAQ: STRN) (NASDAQ: STRNW), a leading outsourced
About this update from Stran & Company, Inc.
[{"type":"text","content":"Quincy, Mass, Dec. 10, 2021 (GLOBE NEWSWIRE) -- Stran & Company, Inc. (\"Stran\" or the \"Company\") (NASDAQ: STRN) (NASDAQ: STRNW), a leading outsourced marketing solutions provider that leverages its promotional products and loyalty incentive expertise, today announced the closing of its previously announced private placement of common stock and warrants. Under the terms of the securities purchase agreement, Stran sold 4,371,926 shares of its common stock and warrants to purchase up to 5,464,903 shares of common stock. The warrants will be exercisable immediately upon the date of issuance and have an exercise price of $4.97 per share. The warrants will expire five years from the date of issuance. The purchase price for one share of common stock and one and one-fourth corresponding warrant will be $4.97. The warrants are subject to standard anti-dilution provisions and with respect to any subsequent equity sale that is deemed a dilutive issuance, the warrants will be subject to a floor price of $4.80 per share before shareholder approval is obtained. After shareholder approval is obtained, the floor price will be reduced to $1.00 per share. The gross proceeds to the Company from the private placement are estimated to be approximately $21.7 million before deducting the placement agent's fees and other estimated offering expenses. The Company intends to use the net proceeds from the private placement for acquisitions and partnerships, investments in technology and expanding corporate infrastructure, expansion of its sales team and marketing efforts and for general working capital and administrative purposes. EF Hutton, division of Benchmark Investments, LLC, acted as exclusive placement agent for the offering. The shares of common stock and warrants described above 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 (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 shares of common stock and the shares issuable upon exercise of the warrants. This press ...