PANews reported on July 11 that Upexi, a Nasdaq-listed company, announced that it has entered into a securities purchase agreement with certain qualified investors, qualified purchasers, institutional investors, and the company's CEO Allan Marshall to purchase and sell 12,457,186 shares of common stock (or equivalent common stock substitutes) at a price of $4.00 per share (the management participation price is $4.94 per share), with total proceeds of approximately $50 million (the 'equity issuance').
Concurrent with the equity issuance, additional securities purchase agreements have been entered into with certain institutional investors and qualified purchasers to purchase convertible notes, completing the subscription in the form of locked-in and spot SOL, with a total original principal amount of approximately $150 million (the 'note issuance'). The convertible notes are secured by SOL provided by the respective holders. The interest rate on the convertible notes is 2.0%, payable quarterly, with a fixed conversion price of $4.25 per share, and a term of 24 months. Big Brain Holdings is the lead investor.
The issuance of the notes is expected to be completed around July 16, 2025, subject to customary closing conditions. The SOL (Solana) underlying this note issuance will become part of the company's Solana asset portfolio upon completion of the transaction. It is expected that approximately 1.65 million SOL will be held after the bond issuance, more than doubling the previously disclosed balance of 735,692 SOL. The net proceeds from the stock issuance will be used in the coming weeks to acquire more SOL.
