I read your article with interest and while reading Prospectus 424B filed by $SOWG on May 3, 2024, I noticed on page 44 that the dilutive warrants amount to approximately 50% of the company's outstanding shares. If this is correct, it means that the company's market capitalization will be 50% higher than it is now. I would appreciate your opinion if I have understood this correctly.
From Prospectus 424B4, Page 44.
Except as otherwise indicated, the discussion and the tables above assume no exercise of the underwriters’ over-allotment option to purchase additional shares of common
stock from us and that the underwriters do not purchase additional shares of common stock from us pursuant to the Representative’s Warrants.
The number of shares of our
common stock to be outstanding after this offering is based on 9,961,809 shares of our common stock outstanding as of April 25, 2024, which is comprised of:
(i) 6,029,371 shares of common stock outstanding as of December 31, 2023;
(ii) the shares issued pursuant to the 2024 PIPE;
(iii) the shares issued in connection with the Warrant Exercise Transaction;
(iv) the shares issued pursuant to the Equity Compensation Grants; and
(v) 1,200,000 shares issued in this offering at a public offering price of $10.00 per share of common stock
and excludes:
•999 shares of our common stock are issuable upon the exercise of options outstanding under the 2012 Plan as of December 31, 2023;
•2,000 shares of our common stock are issuable upon the exercise of options outstanding under the 2016 Plan as of December 31, 2023;
•2,617,814 shares of our common stock are issuable upon the exercise of options outstanding under the 2020 Plan as of December 31, 2023;
•2,291,250 shares of our common stock issuable upon the exercise of outstanding warrants at a weighted average exercise price of $2.50 per share as of December 31, 2023; and
•3,000,000 shares of our common stock are reserved for future issuance under our 2024 Plan, which is now effective, as well as any automatic increases in the number of shares
of common stock reserved for future issuance under the 2024 Plan.
I read your article with interest and while reading Prospectus 424B filed by $SOWG on May 3, 2024, I noticed on page 44 that the dilutive warrants amount to approximately 50% of the company's outstanding shares. If this is correct, it means that the company's market capitalization will be 50% higher than it is now. I would appreciate your opinion if I have understood this correctly.
From Prospectus 424B4, Page 44.
Except as otherwise indicated, the discussion and the tables above assume no exercise of the underwriters’ over-allotment option to purchase additional shares of common
stock from us and that the underwriters do not purchase additional shares of common stock from us pursuant to the Representative’s Warrants.
The number of shares of our
common stock to be outstanding after this offering is based on 9,961,809 shares of our common stock outstanding as of April 25, 2024, which is comprised of:
(i) 6,029,371 shares of common stock outstanding as of December 31, 2023;
(ii) the shares issued pursuant to the 2024 PIPE;
(iii) the shares issued in connection with the Warrant Exercise Transaction;
(iv) the shares issued pursuant to the Equity Compensation Grants; and
(v) 1,200,000 shares issued in this offering at a public offering price of $10.00 per share of common stock
and excludes:
•999 shares of our common stock are issuable upon the exercise of options outstanding under the 2012 Plan as of December 31, 2023;
•2,000 shares of our common stock are issuable upon the exercise of options outstanding under the 2016 Plan as of December 31, 2023;
•2,617,814 shares of our common stock are issuable upon the exercise of options outstanding under the 2020 Plan as of December 31, 2023;
•2,291,250 shares of our common stock issuable upon the exercise of outstanding warrants at a weighted average exercise price of $2.50 per share as of December 31, 2023; and
•3,000,000 shares of our common stock are reserved for future issuance under our 2024 Plan, which is now effective, as well as any automatic increases in the number of shares
of common stock reserved for future issuance under the 2024 Plan.
Great call. Would love to hear your thoughts on the stock today.
thanks! What related party transactions concern you and how large are they?