Owlet raises $9M in private placement of Series B preferred and warrants; Q4 preliminary results strong

On February 26, 2024, the Company issued a press release reporting certain unaudited preliminary financial results for the fourth quarter ended December 31, 2023.

In connection with the closing of the Private Placement, the Company will file the Certificate of Designation with the Secretary of State of the State of Delaware on the Closing Date setting forth the terms, rights, obligations and preferences of the Series B Preferred Stock.

On February 25, 2024, Owlet, Inc. (the “Company”) entered into an Investment Agreement (the “Investment Agreement”) with certain investors listed on Schedule 1 thereto (the “Investors”), pursuant to which the Company will issue and sell to the Investors (i) an aggregate of 9,250 shares (the “Preferred Shares”) of the Company’s Series B Convertible Preferred Stock, par value $0.0001 per share (the “Series B Preferred Stock”) and (ii) warrants (“Warrants”) to purchase an aggregate of 1,799,021 shares of the Company’s Class A Common Stock, par value $0.0001 per share (the “Common Stock”), for an aggregate purchase price of $9.25 million

On February 25, 2024, holders of 22,917 shares of the Series A Preferred Stock, representing a majority of the outstanding shares of Series A Preferred Stock, approved the creation and authorization of the Series B Preferred Stock and the issuance of the Preferred Shares in the Private Placement, as required by the terms of the Company’s Certificate of Designation of Series A Convertible Preferred Stock.

Such holders also approved that the Preferred Shares will be permitted indebtedness under the terms of the Company’s Certificate of Designation of Series A Convertible Preferred Stock.