Smith Micro announces private placement offering of common stock and warrants

Smith Micro Software, Inc. (NASDAQ: SMSI) has announced that it has entered into a securities purchase agreement with institutional investors for the issuance and sale of USD 7.5 million of the company´s common stock at a purchase price of USD 2.32 per share, the company said.

As part of the purchase, each investor will also receive a warrant to purchase an additional number of shares of common stock equal to the number of shares purchased by the investor at an exercise price of USD 2.20 per share. Further, as part of the transaction, previously issued warrant agreements are being amended, which will allow the company to reclassify them as equity.

Chardan acted as exclusive placement agent in connection with this offering. Roth Capital Partners served as financial advisor, and Buchanan Ingersoll & Rooney PC served as counsel to the company.

As part of the closing, the company will enter into a registration rights agreement with investors whereby the company agrees to prepare and file a registration statement with the Securities and Exchange Commission to allow for the registration of the resale of shares of common stock issued in the transaction, as well as the shares of common stock issuable upon exercise of the warrants issued in the transaction.

Smith Micro develops software to simplify and enhance the mobile experience, providing solutions to some of the wireless service providers and Cable MSOs around the world. For more information, visit www.smithmicro.com.