Quincy, Mass, December 10, 2021 (GLOBE NEWSWIRE) – Stran & Company, Inc. (“Stran” or the “Company”) (NASDAQ: STRN) (NASDAQ: STRNW), a leading provider of outsourced marketing solutions which leverages its promotional products and loyalty incentive expertise, today announced the closing of its previously announced private placement of common shares and warrants.
Under the terms of the securities purchase agreement, Stran sold 4,371,926 common shares and warrants to purchase up to 5,464,903 common shares. The warrants will be exercisable immediately on the date of issue and will have an exercise price of $ 4.97 per share. The warrants will expire five years from the date of issue. The purchase price for one common share and one corresponding one-quarter warrant will be $ 4.97. The warrants are subject to standard anti-dilution provisions and with respect to any subsequent sale of shares considered a dilutive issue, the warrants will be subject to a floor price of $ 4.80 per share prior to obtaining shareholder approval. Once shareholder approval is obtained, the floor price will be reduced to $ 1.00 per share. The gross proceeds to the Company from the private placement are estimated to be approximately $ 21.7 million before the deduction of sales agent fees and other estimated offering costs.
The Company intends to use the net proceeds of the private placement for acquisitions and partnerships, investments in technology and the expansion of the company’s infrastructure, the expansion of its sales team and its marketing efforts, as well as general working capital and administrative purposes.
EF Hutton, a division of Benchmark Investments, LLC, acted as the exclusive placement agent for the offering.
The common shares and warrants described above have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration with the the Securities and Exchange Commission (SEC) or an applicable exemption from these registration requirements. The securities were only offered to qualified investors. Pursuant to a registration rights agreement with investors, the Company has agreed to file one or more registration statements with the SEC covering the resale of the common shares and the shares issuable upon exercise of the warrants. subscription.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities described in this document, and there will be no sale of such securities in any state or jurisdiction in which such offering, soliciting or selling would be illegal. prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Stran & Company, Inc.
Over the past 26 years, Stran has grown into a leader in the promotional products industry, specializing in complex marketing programs to help recognize the value of promotional products, branded products and incentive programs. loyalty as a tool to increase awareness, develop brands and have an impact on sales. Stran is the partner of choice for many Fortune 500 companies, across various industries, to execute their promotional marketing, loyalty and incentive, sponsorship activation, recruiting, retention and wellness campaigns. Stran provides world-class customer service and uses cutting-edge technology, including efficient ordering and logistics technology to provide order fulfillment, warehousing and fulfillment functions. The Company’s mission is to develop long-term relationships with its customers, enabling them to connect with both their customers and their employees in order to build lasting brand loyalty. Additional information about the Company is available at: www.stran.com.
This press release contains “forward-looking statements” which are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate”, “believe”, “contemplate”, “might”, “estimate”, “expect”, “have l ‘intention’, ‘seek,’ ‘may’, ‘might’, ‘,,,’ or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on current expectations of the Company and are subject to inherent uncertainties, risks and assumptions that are difficult to predict, and certain forward-looking statements are based on assumptions about future events which may not prove to be correct. These and other risks and uncertainties are further described in the section entitled “Risk Factors” in the final prospectus relating to the Company’s initial public offering filed with the SEC and other reports filed. with the SEC thereafter. this announcement is made on that date, and the Company does not undertake to update this information, unless required by applicable law.