Smart for Life, Inc. Common Stock (SMFL) declined in the pre-market after announcing a $14.4 million IPO. SMFL first-day trading price is set at $10 per share, but the stock declined in the pre-market valuing at around $2.52. The stock is 73% down from the initial price. The company plans to distribute approximately 1.8 million shares. To put this in perspective, the company might raise $19.8 million, which would put the company’s value at $226.2 million.
SMFL IPO Announcement
Smart for Life, Inc. Common Stock (SMFL) priced its IPO of 1,440,000 shares at $14.4 million before underwriting discounts, commissions, and other offering fees.
Each unit comprises one share of common stock or one share of Series B convertible preferred stock as per the buyer’s wish. It is worth $7 per share and is valid until five years after the issue. Each unit contains one Series A warrant, which allows the owner to buy one share of common stock at that price. Series B warrants values at $10.00 each. They can be used until the fifth anniversary of the date they were given out, but there are some rules about when they can be used and how much they can be worth.
The Securities and Exchange Commission (SEC) approved a registration statement on Form S-1 (File No. 333-261699) on February 14, 2022.
Other developments
The company will trade under the ticker symbol SMFL on NASDAQ. The company expects its stock to trade on the stock market around the midday trading session. A 45-day option to acquire up to 15% of additional units, minus underwriting discounts and commissions, has also been provided by the Company. Upon the completion of all criteria, the offering projects are to conclude on or around February 18, 2022.
Conclusion
The company stands at strong and growing financial numbers. The company’s revenue in 2020 was $5.6 million, and in the first nine months of 2021, which ended on September 31, 2021, its revenue was $4.79 million. The company growth rate suggests that stock is suitable for future growth stocks.
