Wearable Devices announces $10M standby equity purchase agreement

Wearable Devices has entered into a Standby Equity Purchase Agreement, with YA II PN. Pursuant to the terms of the SEPA, YA is committed to purchase up to $10 million, of the Company’s ordinary shares at any time during the three-year period following the execution date of the SEPA. The purchase price of the ordinary shares sold to YA will be at a 3% discount of the lowest daily volume weighted average price of the Company’s ordinary shares during the three consecutive trading day period commencing on the trading day of the delivery of an advance notice by the Company. Subject to certain conditions, the Company may request pre-paid advances of the Commitment Amount, in an amount up to $3 million, which will be evidenced by one or more promissory notes. The Company requested, and has received, an initial pre-paid advance of $2 million in connection with the execution of the SEPA. The Company will have the sole right in its discretion to sell shares to YA from time to time by issuing advance notices to YA following the effectiveness of a registration statement with the Securities and Exchange Commission registering the ordinary shares issuable pursuant to the SEPA and the satisfaction of other customary conditions. The Company intends to use the proceeds from the potential offering of the ordinary shares pursuant to the SEPA for working capital and other general corporate purposes, and to repay any pre-paid advances. The Company is not obligated to utilize any of the $10 million available under the SEPA and there are no minimum commitments or minimum use penalties. The total amount of funds that ultimately can be raised under the SEPA over the three-year term will depend on the market price for the ordinary shares and the number of ordinary shares actually sold. The SEPA does not impose any restrictions on the Company’s operating activities. YA is subject to a beneficial ownership cap which cannot result in YA holding more than 4.99% of the share capital of the Company at any time.