Shares of Mobix Labs, Inc. (NASDAQ:MOBX) dropped 7.4% on Wednesday following the announcement that the fabless semiconductor firm has reached an agreement with a warrant holder to immediately exercise warrants for around 5.5 million Class A common shares.
The warrants will be exercised at $0.8202 per share, generating approximately $4.5 million in gross proceeds for Mobix Labs, before accounting for financial advisory fees. Roth Capital Partners is serving as the financial advisor for the transaction.
Under the terms of the agreement, Mobix Labs will issue new unregistered warrants enabling the purchase of up to 8.2 million common shares at an exercise price of $1.08 per share. These warrants will become exercisable once approved by shareholders and will have a five-year term from the date of approval.
The transaction is expected to close around September 4, 2025, subject to standard closing conditions. Mobix Labs plans to use the net proceeds for working capital and general corporate purposes.
Mobix Labs specializes in advanced connectivity solutions for wired and wireless 5G applications, as well as for defense, aerospace, and medical sectors. Shares of common stock issuable upon exercise of the existing warrants are registered for resale under an effective registration statement.
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