SpringBig Holdings, Inc. (NASDAQ:SBIG) has announced a public offering of 13 million shares of its common stock at an at-the-market price of $0.3037. Roth Capital Partners is acting as the sole placement agent for the offering. The closing of the offering is expected to take place on or about May 31, 2023, subject to customary closing conditions.
The gross cash proceeds from the offering are expected to be approximately $3.0 million, before deducting fees and expenses payable by springbig. SpringBig will also cancel approximately $1.0 million of the company’s existing senior secured convertible note, which is held by L1 Capital Global Opportunities, in exchange for shares in the offering at the offering price. SpringBig intends to use the net proceeds from this offering for working capital and general corporate purposes, including the repayment of $750,000 of principal amount of the note to L1 Capital upon the closing of the offering.
“We are delighted to have strengthened our balance sheet with this public offering and are appreciative of the willingness of L1 Capital to support the future growth of springbig,” said Paul Sykes, CFO of springbig. “We continue to make significant progress along our path to profitability and now have the capital resources to continue to develop our business.”
SpringBig shares fell 22.49% to $0.2354 per share at the time of writing Friday morning.
In related news, SpringBig’s Q1 earnings were up 16% YoY and subscription revenue increased by 28%.
SpringBig has also launched its first AI offering, which helps cannabis retailers keep up with the various trends in the industry.