Owlet, Inc. (OWLT) Announces $30 Million Private Placement Financing

Owlet, Inc. (NYSE: OWLT) (“Owlet” or the “Company”) today announced it has consummated a sale of its newly issued Series A convertible preferred stock (“Series A preferred stock”) and warrants to purchase its Class A common stock (“common stock”) in a private placement with certain institutional and other accredited investors for gross proceeds to Owlet of $30 million, before deducting offering expenses. The transaction closed on February 17, 2023 and involved participation from new and existing investors.

Pursuant to the terms of the definitive agreements and the closing of the private placement, Owlet has issued shares of Series A preferred stock that are convertible into approximately 61.2 million shares of common stock. Each purchaser will also receive a warrant to purchase 180% of the number of shares of common stock into which their Series A preferred stock is convertible. The warrants will have a per share exercise price of $0.333 and will be exercisable by the holder at any time on or after the issuance date for a period of five years.

Additional details regarding the private placement will be included in a Form 8-K to be filed by Owlet with the Securities and Exchange Commission (“SEC”).

Owlet intends to utilize the net proceeds for general corporate purposes and to fund its strategic initiatives.

The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or securities laws of any state or other jurisdiction, and may not be resold absent registration under, or exemption from registration under, the Securities Act. Owlet has agreed to file a registration statement with the SEC registering the resale of the shares of common stock underlying the Series A preferred stock and warrants.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

Cowen acted as placement agent for the private placement.

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