SOBR Safe, Inc.’s stock (SOBR) is experiencing a dramatic surge on Friday morning, climbing a staggering 116.3% in premarket trading. This surge comes on the heels of the company’s decision to abandon its proposed public offering.
The company’s Form RW filing, submitted on Thursday, indicated that SOBR Safe has opted not to proceed with the public offering at this time. This decision follows a recent announcement of a successful private placement with institutional investors, securing $8.2 million in gross proceeds.
The private placement involved the issuance of 2.02 million units at $4.05 per unit. Each unit comprises one share of common stock or a pre-funded warrant, along with Series A and Series B warrants. The company intends to utilize the proceeds for general corporate purposes and working capital.
Initially, the private placement was expected to close by October 8, pending customary closing conditions. However, the sudden decision to withdraw the public offering has seemingly injected significant momentum into the stock.
Investors appear to be optimistic about SOBR Safe’s future prospects, despite the withdrawal of the public offering. The company’s successful private placement, coupled with its current financial position, may be contributing to this positive sentiment. It remains to be seen how this development will ultimately impact SOBR Safe’s long-term growth strategy.