Following the successful close of its IPO, Smart for Life Inc. (SMFL) stock finally rebounded in the premarket on Tuesday. The company announced the close of its IPO on February 18, 2022.
During the regular trading session, SMFL stock fluctuated between a high of $1.79 and a low of $1.33. With a huge loss of 27.17% at $1.34, the stock remained in the red during the session. Friday saw a volume of 5.61 million shares, above its usual average. Following the news, the stock bounced back in the premarket session today, as it started trading in the green for the first time since the IPO. SMFL had increased by 6.72% to trade at $1.43 per share in the premarket, at the time of writing. The before-hours volume was 675.03K shares at the last check, on Tuesday.
The nutraceutical products’ supplier, Smart for Life Inc. was founded in 2017. The Miami-based company has a market capitalization of $27.56 million as of now. Currently, the company has 20.57 million shares outstanding in the market.
Initial Public Offering of SMFL
On February 16, the company announced the pricing of its initial public offering of 1,440,000 units for gross proceeds of $14.4 million approx. Each of the offering units consisted of a common stock share, a Series A warrant for buying a common stock share, and a Series B warrant for buying a common stock share. Moreover, the exercise price of the Series A warrant was equal to $7.00 per share with an exercise duration of five years. The exercise price of the Series B warrant was equal to $10.00 per share with the same duration applicable for exercising.
Additionally, a 45-day option was also granted to the underwriter for buying up to 15% of additional units.
In connection with the IPO, the company’s common stock commenced trading on Nasdaq under “SMFL” on February 16, 2022.
On February 18, the company announced the closing of its initial public offering with gross proceeds of $14,404,128.
Stock Movement
Since the company’s stock began trading on Nasdaq, its price had been declining. The stock remained in a continuous downtrend starting from $3.0 to a low of $1.34 on February 18. SMFL has lost more than half of its value since the IPO. The stock finally seems to be on a path to recovery as it continues to rise in the premarket. Given the low before-hours volume, the stock’s movement at the moment is highly volatile. Therefore, the opening of the regular market will provide the actual image as to where the stock is headed.
