Investing.com -- Shares of Upexi Inc (NASDAQ: UPXI ) surged 550% following the announcement of a successful pricing of a $100 million private placement above the last market closing price to finance Solana acquisition, signaling strong investor confidence.
The company, known for its consumer products and recent diversification into cryptocurrency, stated that the private placement consists of the sale of 43,859,649 shares at $2.28 each, with prominent investors including crypto venture capital firms and high-profile angels. The closing of the offering is anticipated on or about April 24, 2025, subject to customary closing conditions.
Upexi plans to allocate approximately $5.3 million of the proceeds for working capital and debt reduction, while the remainder will fund the establishment of the company’s Solana treasury operations and accumulation of Solana, a strategic move into the blockchain space.
The private placement attracted a consortium of investors, including GSR as the lead and participation from Big Brain, Anagram, and others. Notably, individuals such as Arthur Hayes’ family office and several prominent angels like Austin Federa have contributed to the round.
The transaction, managed by A.G.P./Alliance Global Partners (NYSE: GLP ) as the sole placement agent, leverages exemptions from registration under the Securities Act, indicating that the securities will not be immediately available for public trading in the United States except under certain conditions.
Investors have reacted positively to Upexi’s private placement, as evidenced by the dramatic increase in stock price, which suggests a robust endorsement of the company’s current strategy and future prospects in both its traditional business and its new cryptocurrency initiatives.
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