SRM Entertainment Announces Closing of $5 Million Private Placement
SRM Entertainment (NASDAQ: SRM) has completed a private placement offering, raising $5 million in gross proceeds through the sale of 5,000 shares of Series A Convertible Preferred Stock. The preferred stock is convertible into 8,928,571 shares of common stock at a conversion price of $0.56 per share. The offering also included warrants to purchase up to 8,928,571 shares at an exercise price of $0.65 per share, exercisable immediately and expiring in two years.
Each unit, priced at $1,000, consisted of one preferred share convertible into approximately 1,785 common shares and an equal number of warrants. Dominari Securities acted as the sole placement agent. The company plans to use the net proceeds for general corporate purposes and working capital.
SRM Entertainment (NASDAQ: SRM) ha completato un'offerta in collocamento privato, raccogliendo 5 milioni di dollari di proventi lordi tramite la vendita di 5.000 azioni di Azioni Preferenziali Convertibili di Serie A. Le azioni preferenziali sono convertibili in 8.928.571 azioni ordinarie a un prezzo di conversione di 0,56 dollari per azione. L'offerta includeva anche warrant per l'acquisto fino a 8.928.571 azioni a un prezzo di esercizio di 0,65 dollari per azione, esercitabili immediatamente e con scadenza entro due anni.
Ogni unit脿, al prezzo di 1.000 dollari, comprendeva un'azione preferenziale convertibile in circa 1.785 azioni ordinarie e un numero pari di warrant. Dominari Securities ha agito come unico agente di collocamento. La societ脿 intende utilizzare i proventi netti per scopi societari generali e capitale circolante.
SRM Entertainment (NASDAQ: SRM) ha completado una oferta privada, recaudando 5 millones de d贸lares en ingresos brutos mediante la venta de 5.000 acciones de acciones preferentes convertibles Serie A. Las acciones preferentes son convertibles en 8.928.571 acciones comunes a un precio de conversi贸n de 0,56 d贸lares por acci贸n. La oferta tambi茅n incluy贸 warrants para comprar hasta 8.928.571 acciones a un precio de ejercicio de 0,65 d贸lares por acci贸n, ejercitables de inmediato y con vencimiento en dos a帽os.
Cada unidad, con un precio de 1.000 d贸lares, consisti贸 en una acci贸n preferente convertible en aproximadamente 1.785 acciones comunes y un n煤mero igual de warrants. Dominari Securities actu贸 como agente 煤nico de colocaci贸n. La compa帽铆a planea usar los ingresos netos para prop贸sitos corporativos generales y capital de trabajo.
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SRM Entertainment (NASDAQ : SRM) a finalis茅 une offre priv茅e, levant 5 millions de dollars de produits bruts gr芒ce 脿 la vente de 5 000 actions privil茅gi茅es convertibles de s茅rie A. Les actions privil茅gi茅es sont convertibles en 8 928 571 actions ordinaires 脿 un prix de conversion de 0,56 dollar par action. L'offre comprenait 茅galement des bons de souscription permettant d'acheter jusqu'脿 8 928 571 actions 脿 un prix d'exercice de 0,65 dollar par action, exer莽ables imm茅diatement et expirant dans deux ans.
Chaque unit茅, au prix de 1 000 dollars, comprenait une action privil茅gi茅e convertible en environ 1 785 actions ordinaires et un nombre 茅gal de bons de souscription. Dominari Securities a agi en tant qu'agent de placement unique. La soci茅t茅 pr茅voit d'utiliser les produits nets 脿 des fins g茅n茅rales d'entreprise et de fonds de roulement.
SRM Entertainment (NASDAQ: SRM) hat eine Privatplatzierung abgeschlossen und dabei 5 Millionen US-Dollar Bruttoerl枚s durch den Verkauf von 5.000 Aktien der Series A Wandelvorzugsaktien erzielt. Die Vorzugsaktien sind wandelbar in 8.928.571 Stammaktien zu einem Wandlungspreis von 0,56 US-Dollar pro Aktie. Das Angebot umfasste au脽erdem Optionsscheine zum Kauf von bis zu 8.928.571 Aktien zu einem Aus眉bungspreis von 0,65 US-Dollar pro Aktie, die sofort ausge眉bt werden k枚nnen und in zwei Jahren verfallen.
Jede Einheit zum Preis von 1.000 US-Dollar bestand aus einer wandelbaren Vorzugsaktie, die in etwa 1.785 Stammaktien umgewandelt werden kann, sowie einer gleichen Anzahl von Optionsscheinen. Dominari Securities fungierte als alleiniger Platzierungsagent. Das Unternehmen plant, die Nettoerl枚se f眉r allgemeine Unternehmenszwecke und Betriebskapital zu verwenden.
- Secured $5 million in immediate funding for working capital
- Warrants priced at $0.65, representing a premium to the conversion price
- Significant potential dilution with 8,928,571 new shares from preferred stock conversion
- Additional dilution possible from warrant exercise of 8,928,571 shares
- Conversion price of $0.56 may indicate a discount to market price
Insights
SRM raised $5M through convertible preferred shares and warrants, strengthening working capital but potentially diluting existing shareholders substantially.
SRM Entertainment has closed a
The structure is particularly notable - the preferred shares are convertible into common stock at
This financing appears to come at a substantial cost. The effective conversion price of
The company states the proceeds will be used for "general corporate purposes, including working capital," which suggests defensive positioning rather than specific growth initiatives. This type of general-purpose fundraising often indicates a company needing to shore up its balance sheet rather than funding specific strategic opportunities.
The involvement of Dominari Securities as the sole placement agent is standard practice, though they will receive fees further reducing the net proceeds to SRM. The private placement to accredited investors under exemptions from SEC registration requirements is a faster but more restricted approach than a public offering, typically pursued when a company needs capital relatively quickly.
Winter Park, Florida, May 27, 2025 (GLOBE NEWSWIRE) -- SRM Entertainment, Inc. (Nasdaq: SRM) (鈥淪RM鈥� or the 鈥淐ompany鈥�), a leading provider of creative and high-quality licensed media-themed merchandise, announces today the closing of its previously announced private investment in public equity (鈥淧IPE鈥�) financing with an institutional investor for gross proceeds to the Company of
Pursuant to the terms of the securities purchase agreement, the Company sold an aggregate of 5,000 shares of its Series A Convertible Preferred Stock, convertible into an aggregate of 8,928,571 shares of common stock at a conversion price of
Dominari Securities LLC acted as the sole placement agent for the PIPE financing.
The securities being offered and sold by the Company in the private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (the "SEC") or an applicable exemption from such registration requirements. The securities were offered only to accredited investors. The Company has agreed to file one or more registration statements with the SEC covering the resale of the unregistered shares issuable upon the conversion of the Series A Preferred Stock and the shares issuable upon exercise of the unregistered warrants.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About SRM Entertainment, Inc.
SRM Entertainment designs, develops, and manufactures custom merchandise which includes toys and souvenirs for the world's largest theme parks and other entertainment venues. Many of SRM鈥檚 creative products are based on award winning multi-billion-dollar entertainment franchises that are featured in popular movies and books. SRM products are distributed worldwide at Walt Disney Parks and Resorts, Universal Parks and Destinations, United Parks and Resorts 鈥� SeaWorld, Six Flags and other attractions. SRM鈥檚 products are offered alongside popular rides and attractions in theme parks, zoos, aquariums, and other entertainment venues. SRM鈥檚 design team developed specialty dolls, plush and toys for one of New York City鈥檚 landmarks that features a popular holiday show. SRM鈥檚 design team is credited with creating popular products which have been successfully sold at specialty theme park events. SRM鈥檚 exclusive-patented Sip With Me cups feature fun, kid friendly Zoo, Sea and animal themed characters as well as licensed characters from Smurfs, ICEE and Zoonicorn.
Caution Regarding Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. Investors can identify these forward-looking statements by words or phrases such as 鈥渕ay,鈥� 鈥渨ill,鈥� 鈥渆xpect,鈥� 鈥渁nticipate,鈥� 鈥渁im,鈥� 鈥渆stimate,鈥� 鈥渋ntend,鈥� 鈥減lan,鈥� 鈥渂elieve,鈥� 鈥渋s/are likely to,鈥� 鈥減otential,鈥� 鈥渃ontinue鈥� or other similar expressions. These statements are subject to uncertainties and risks including, but not limited to, the risk factors discussed in the Risk Factors and in Management鈥檚 Discussion and Analysis of Financial Condition and Results of Operations sections of our Forms 10-K, 10-Q and other reports filed with the SEC and available at . Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company鈥檚 registration statement and other filings with the SEC. Additional factors are discussed in the Company鈥檚 filings with the SEC, which are available for review at . The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law.
Media and Investor Relations
(407)-230-8100
website: SRMentertainment.com
FAQ
How much did SRM Entertainment raise in their May 2025 private placement?
What is the conversion price for SRM's Series A Convertible Preferred Stock?
How many potential new shares could be issued from SRM's May 2025 offering?
What are the terms of the warrants in SRM's private placement?
How does SRM plan to use the proceeds from the private placement?
