By Chris Wack
Fitell shares were down 28% to $4.55 after the company entered into a definitive agreement with an institutional investor for the issuance and sale in a registered direct offering of about 2 million shares and warrants to buy up to about another 2 million shares.
The purchase price is $5.02 per ordinary share and associated warrant.
The Australia-based fitness-equipment retailer said the warrants will have an exercise price of $5.02 per share, will be exercisable immediately upon issuance and will expire five years following the issaunce date.
The offering is expected to close on or about Monday.
The proceeds to the company from the offering are expected to be about $10 million. Fitell said it intends to use the proceeds for the development and commercial launch of smart fitness equipment and for general corporate purposes and working capital.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
February 07, 2025 10:59 ET (15:59 GMT)
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