BEAVERTON, Ore. - WiSA Technologies, Inc. (NASDAQ: WISA), known for its wireless audio technology, announced a new securities purchase agreement with institutional investors to acquire approximately 76.7 million shares of common stock, including pre-funded warrants.
This registered direct offering is priced at-the-market under Nasdaq rules, with each share or warrant equivalent set at $0.03. The company also initiated a concurrent private placement for warrants to purchase up to an equal number of shares, exercisable at $0.04 per share upon stockholder approval, expiring five years from that date.
The transactions are estimated to yield gross proceeds of around $2.3 million for WiSA Technologies, before accounting for placement agent fees and other offering expenses. Maxim (NASDAQ:MXIM) Group LLC is serving as the sole placement agent for both the direct offering and the private placement. The closing of the offering is anticipated on or about March 27, 2024, subject to customary closing conditions.
The public offering is being made through a shelf registration statement, previously declared effective by the SEC on September 13, 2022. The private placement warrants and corresponding shares are not registered under the Securities Act or state securities laws and are being offered under exemptions.
WiSA Technologies, a leader in immersive wireless sound for intelligent devices and home entertainment systems, collaborates with top consumer electronics brands to deliver high-definition wireless audio experiences. The company, headquartered in Oregon, is also a founding member of the Wireless Speaker and Audio Association.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, and there will be no sale of these securities in any state or jurisdiction where such offer, solicitation or sale would be unlawful before registration or qualification under the securities laws of any such state or jurisdiction.
InvestingPro Insights
WiSA Technologies, Inc. (NASDAQ: WISA) is navigating challenging financial waters as reflected in the real-time metrics from InvestingPro. The company's Market Cap stands at a modest 1.64M USD, underscoring its position as a small-cap entity in a competitive market. The data also reveals a significant Revenue Growth decline of -42.03% over the last twelve months as of Q1 2023, which aligns with analysts' anticipation of a sales decline in the current year, an InvestingPro Tip that highlights potential headwinds for the company.
Another concerning metric is the Gross Profit Margin, recorded at an alarming -120.51% for the same period, indicating that the company is not only failing to turn a profit but is selling its products at a loss. This is compounded by a substantial Operating Income Margin of -857.93%, suggesting operational inefficiencies or high overhead costs that are eroding potential earnings.
InvestingPro Tips also suggest that WiSA Technologies is grappling with high price volatility and significant debt, possibly influencing its decision to enter into a securities purchase agreement as a means of shoring up its capital structure. The company's stock has been in oversold territory, which could be a signal to investors that the stock might be undervalued, presenting a potential opportunity for those willing to absorb the risk.
Investors looking for a deeper dive into WiSA Technologies' financial health can find a more comprehensive list of InvestingPro Tips at https://www.investing.com/pro/WISA. There are a total of 16 additional tips available, which could provide valuable insights for those considering this stock. To access these insights, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, enhancing their investment research toolkit.
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