PITTSBURGH, May 14, 2024--(BUSINESS WIRE)--Smith Micro Software, Inc. (the "Company" or "Smith Micro") (NASDAQ: SMSI), a software development company that sells proven solutions to wireless service providers, today announced the closing of its offering of 1,910,000 shares of its common stock or common stock equivalents in lieu thereof (together with accompanying warrants) at a price of $2.15 per share to certain institutional and accredited investors pursuant to a definitive agreement with the investors. The holders of the warrants will be able to purchase up to an aggregate of 1,910,000 shares of the Company’s common stock at an exercise price of $2.34 per share. The warrants were issued to the investors in a private placement and will become exercisable following the six month anniversary of the closing date for the transaction and will expire on the date that is five and one-half years after the closing date.

The offering resulted in gross proceeds to the Company of approximately $4.1 million prior to placement agent fees and other offering expenses. Smith Micro intends to use the net proceeds from this offering for working capital and general corporate purposes.

Roth Capital Partners acted as the exclusive placement agent for the offering. Buchanan Ingersoll & Rooney PC served as legal counsel to the Company, and Nelson, Mullins, Riley & Scarborough LLP served as legal counsel to the placement agent.

A shelf registration statement on Form S-3, File No. 333-264667, relating to the offering of the shares of common stock and common stock equivalents described above was filed with the Securities and Exchange Commission ("SEC") and declared effective on May 12, 2022. A prospectus supplement describing the terms of the offering and the accompanying base prospectus were filed with the SEC and are available for free on the SEC’s website located at https://www.sec.gov. The offering of the common stock and common stock equivalents was made only by means of a prospectus. Electronic copies of the prospectus supplement and the accompanying prospectus relating to the offering may be obtained by contacting: Roth Capital Partners, 888 San Clemente Drive, Newport Beach, CA 92660, Attn: Prospectus Department, telephone: 800-678-9147, or by email at [email protected].

The warrants were offered and sold in a transaction exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to the exemption for transactions by an issuer not involving any public offering under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D of the Securities Act and in reliance on similar exemptions under applicable state laws. Accordingly, the warrants and underlying shares of common stock issuable upon exercise of the warrants may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws. The Company has agreed to file a registration statement with the SEC registering the resale of the shares of common stock issuable upon exercise of the warrants issued in connection with the private placement.