SRM Entertainment Announces Registered Direct Offering of Common Stock

SRM Entertainment, Inc. (NASDAQ: SRM) disclosed in a recent Securities and Exchange Commission filing that it initiated a registered direct offering for its common stock. The company entered into four Securities Purchase Agreements (SPAs) on October 18 and 19, 2024, with four accredited investors. These agreements outline the purchase and sale of 1,711,477 shares of SRM Entertainment’s common stock at a price of $0.61 per share, resulting in gross proceeds of around $1,044,000 from the offering.

Notably, three SPAs were dated on October 18, 2024, with three investors, while the fourth agreement was signed on October 19, 2024, with a single investor. It’s essential to highlight that SRM Entertainment did not engage a placement agent or underwriter for this Registered Offering.

The Shares are being offered and sold to the Investors through a prospectus supplement and accompanying prospectus filed with the SEC. This offering is in connection with the Company’s effective shelf registration statement on Form S-3 (File No. 333-282028), which was filed on September 11, 2024, and declared effective on September 19, 2024.

To ensure compliance with legal requirements, Lucosky Brookman LLP has provided a legal opinion concerning the issuance and sale of the Shares in the Registered Offering, as indicated in Exhibit 5.1 attached to the filing.

The SPAs encompass customary representations, warranties, and covenants by SRM Entertainment, along with standard closing conditions, indemnification obligations, and termination clauses. Interested parties are directed to refer to the full text of the SPA, detailed in Exhibit 10.1 of the document filed with the SEC, for a comprehensive understanding of the agreement’s terms.

In compliance with financial reporting standards, SRM Entertainment included various exhibits in the filing, such as the opinion of Lucosky Brookman LLP (Exhibit 5.1), the Securities Purchase Agreement (Exhibit 10.1), the consent of Lucosky Brookman LLP (included in Exhibit 5.1), and the Cover Page Interactive Data File (embedded within the Inline XBRL document).

It’s important to note that this news does not constitute a complete description of the material terms outlined in the SPAs, and interested parties are encouraged to refer to the full text of the agreements in the filed documentation.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read SRM Entertainment’s 8K filing here.

About SRM Entertainment

SRM Entertainment, Inc designs, manufactures, and sells toys and souvenirs to theme parks. It sells its products through amusement parks, entertainment venues, and theme hotels in the United States, China, Japan, and internationally. The company was incorporated in 2022 and is based in Jupiter, Florida.