Owlet Inc (NYSE:OWLT) saw its stock fall 7.2% on Wednesday after the company announced the pricing of a public offering valued at approximately $30 million.
The offering includes 4,196,000 shares of Class A common stock priced at $7.15 per share. The company also granted underwriters a 30-day option to purchase up to an additional 629,400 shares at the same price.
Owlet plans to use the net proceeds to further commercialize its products, invest in research and development, and for general corporate purposes. The transaction is expected to close around October 23, 2025, subject to customary conditions.
William Blair & Company and TD Cowen are acting as joint bookrunners, with Craig-Hallum Capital Group serving as co-manager.
The company, known for pioneering smart infant monitoring technology, experienced a selloff as investors reacted to the dilution risk tied to the new issuance. The offering price, set below the previous day’s closing, also weighed on investor sentiment.