SRM Entertainment (NASDAQ: SRM) Enters into Securities Purchase Agreement

On December 5, 2024, SRM Entertainment, Inc. announced that it had entered into a securities purchase agreement with institutional investors for a registered direct offering. The agreement involves the sale and issuance of 1,580,000 shares of the company’s common stock at a purchase price of $0.7385 per share, along with 712,133 pre-funded warrants to purchase up to an aggregate of 712,133 shares of common stock at a purchase price of $0.7384 per warrant. This arrangement is expected to provide the company with approximately $1.7 million in gross proceeds.

These securities are being offered under a shelf registration statement on Form S-3 and a related prospectus supplement. The purchase agreement includes standard representations, warranties, and agreements between the company and the purchasers, as well as indemnification rights and obligations.

As part of the agreement, the company is restricted from issuing any additional shares of common stock or Common Stock Equivalents for 60 days following the offering’s closing. The company’s directors and officers have also agreed to a 30-day lock-up period following the completion of the offering. The offering is anticipated to close on or around December 6, 2024, subject to customary closing conditions.

SRM Entertainment engaged D. Boral Capital LLC as the sole placement agent for the offering. The company will pay the placement agent an 8.0% cash fee based on the aggregate gross proceeds of the offering and will reimburse the agent for expenses incurred, including legal costs.

The full texts of the Purchase Agreement, the Pre-Funded Warrants, and the Placement Agency Agreement are available as Exhibits attached to the SEC filing. Additionally, an opinion from Lucosky Brookman LLP regarding the validity of the securities is included as Exhibit 5.1.

The company, an emerging growth entity, has provided the necessary filings and financial statements in accordance with SEC regulations.

Investors and stakeholders are advised to review the SEC filing for more detailed information on the transaction. SRM Entertainment’s Chief Executive Officer, Richard Miller, signed the report on behalf of the company on December 6, 2024.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read SRM Entertainment’s 8K filing here.

About SRM Entertainment

SRM Entertainment, Inc designs, manufactures, and sells toys and souvenirs to theme parks. It sells its products through amusement parks, entertainment venues, and theme hotels in the United States, China, Japan, and internationally. The company was incorporated in 2022 and is based in Jupiter, Florida.