Owlet announces $9M private placement financing

Owlet that it has entered into definitive documentation relating to a sale of shares of its newly issued Series B convertible preferred stock and warrants to purchase its Class A common stock in a private placement with certain institutional and other accredited investors for gross proceeds to Owlet of approximately $9M, before deducting offering expenses. The conversion ratio for the Series B preferred stock and exercise price for the warrants reflects a 25% premium to the most recent market closing price on February 23. The transaction, which involves participation from existing investors, is expected to close on February 28, subject to customary closing conditions. Pursuant to the terms of the definitive agreements and the closing of the private placement, Owlet will issue shares of Series B preferred stock that are convertible into approximately 1.2M shares of common stock. Each purchaser will also receive a warrant to purchase 150% of the number of shares of common stock into which their Series B preferred stock is convertible. The warrants will have a per share exercise price of $7.7125 and will be exercisable by the holder at any time on or after the issuance date for a period of five years.