WiSA Technologies, Inc. (NASDAQ:WISA), a semiconductor and related devices manufacturer, announced today an extension to the inducement period for warrant holders. The company has entered into a second amendment agreement with each of the holders of certain common stock purchase warrants, originally issued as part of an exchange agreement on September 10, 2024.
Under the original terms, warrant holders were given an inducement to exercise their warrants by September 30, 2024, which was then extended to October 31, 2024. The latest amendment further extends this period to November 30, 2024. In return for exercising their warrants within this timeframe, holders will receive additional warrants exercisable for up to 65% of the number of shares issued upon exercise of the original warrants.
This move by WiSA Technologies is part of its efforts to encourage the exercise of the exchange warrants, which were part of a strategic financial maneuver initiated in September. The company's decision to extend the inducement period reflects a continued effort to engage with warrant holders and potentially strengthen its capital position.
The details of the second amendment agreement, effective as of October 31, 2024, are outlined in Exhibit 10.1 of the SEC Form 8-K filing. WiSA Technologies has not disclosed the financial impact or the specific reasons behind the extension.
Investors and stakeholders can refer to the full text of the second amendment agreement attached to the SEC filing for a complete understanding of the terms and conditions. The company, headquartered in Beaverton, Oregon, and formerly known as Summit Wireless Technologies, Inc., has been in the semiconductor industry under various names since before its name change in 2018.
The information in this article is based on a press release statement from WiSA Technologies and reflects the company's latest strategic financial actions.
In other recent news, WiSA Technologies has projected a significant surge in its Q3 revenue, expecting it to reach between $1.0 million and $1.2 million. This marks a substantial rise from the $0.3 million reported in the previous quarter. The growth is attributed to the sales of WiSA's multichannel wireless audio technology, which has been integrated by a multi-national licensee into their devices and speakers.
In addition to financial developments, WiSA Technologies has seen changes in its executive team. Stanley Mbugua was recently appointed as the new Vice President of Finance, set to succeed Gary Williams as Chief Accounting Officer by the end of November 2024.
The company has also extended the warrant exercise period and issued new common stock purchase warrants, as part of its strategic financial adjustments. Furthermore, WiSA Technologies launched WiSA E, a new technology for wireless immersive audio transmission, securing five licenses with expected revenue later this year.
These are among the recent developments at WiSA Technologies as the company navigates its transitional phase.
InvestingPro Insights
WiSA Technologies' recent warrant extension strategy aligns with its current financial position, as revealed by InvestingPro data. The company's market capitalization stands at a modest $10.4 million, reflecting its small-cap status. This context underscores the importance of the warrant exercise in potentially bolstering the company's capital position.
InvestingPro Tips highlight that WiSA is "quickly burning through cash" and "not profitable over the last twelve months," with a negative gross profit margin of -115.99% in the last twelve months as of Q2 2024. These factors likely contribute to the company's efforts to incentivize warrant exercises, which could provide a much-needed cash infusion.
The company's stock has shown significant volatility, with InvestingPro data indicating a 12.28% return over the last week, contrasting sharply with a -91.66% return over the past year. This volatility, combined with the tip that the "stock price often moves in the opposite direction of the market," suggests that investors should approach WiSA with caution.
For those seeking a deeper understanding of WiSA's financial health and market position, InvestingPro offers 16 additional tips, providing a comprehensive analysis to inform investment decisions.
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