Sharps Technology, Inc. Secures $3.5 Million Bridge Loan Financing
In a recent development, Sharps Technology, Inc. (NASDAQ: STSS), a leading medical device and pharmaceutical packaging company, has successfully closed a $3.5 million secured bridge loan financing. This transaction, completed today, involved the sale of securities to accredited investors, combining secured notes and shares of common stock.
The bridge financing included the sale of approximately $4,375,000 in principal amount of secured notes and 5,700,006 shares of common stock. For each $1,000 invested, purchasers received $1,250 in aggregate principal amount of the notes and 1,628.57 shares of common stock. The gross proceeds to Sharps Technology from this private placement were approximately $3.5 million before deductions for fees and expenses.
Sharps Technology has stated that it plans to use the net proceeds from this offering, along with its existing cash reserves, for general corporate purposes and working capital. Aegis Capital Corp. served as the exclusive placement agent for the private placement, with legal counsels provided by Sichenzia Ross Ference Carmel LLP and Kaufman & Canoles, P.C.
It is important to note that the securities sold through this bridge financing have not been registered under the Securities Act of 1933 or state securities laws and were offered only to accredited investors. As part of a registration rights agreement with the investors, Sharps Technology has committed to filing one or more registration statements with the SEC for the resale of the common stock.
Sharps Technology is renowned for its innovative smart-safety syringe products with ultra-low waste capabilities and safety features. The company operates a manufacturing facility in Hungary and has a partnership with Nephron Pharmaceuticals to expand manufacturing in the U.S.
In addition to the financing agreement, Sharps Technology has made strategic changes to its corporate structure, including an increase in authorized common stock shares and potential reverse stock split. The company is also facing challenges with its stock performance and financial health, as indicated by negative P/E ratio and significant stock price declines.
Investors should proceed with caution and consider all factors before making any investment decisions related to Sharps Technology. It is essential to conduct thorough research and seek professional advice to understand the implications of these developments on their finances and investment portfolios.
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