CONNEXA Announces $5.0 Million Private Placement

BALTIMORE, Md., Sept. 28, 2022 (GLOBE NEWSWIRE) — Connexa Sports Technologies, Inc. (NASDAQ: CNXA) (“Connexa”), today announced that it has entered into a securities purchase agreement with a single institutional investor for the issuance and sale of 12,820,512 shares of its common stock (or common stock equivalents in lieu thereof), together with accompanying common stock warrants, at a combined purchase price of $0.39 per share (or common stock equivalents) and accompanying warrants in a private placement. The shares of common stock (or common stock equivalents) were sold in the offering together with 12,820,512 warrants to purchase 12,820,512 shares of common stock at an exercise price of $0.39 per share and a term of five years following the initial exercise date and 25,641,024 warrants to purchase 25,641,024 shares of common stock at an exercise price of $0.43 per share and a term of seven and one half years following the initial exercise date (collectively, the “Warrants”). The Warrants issued in this transaction contain variable pricing features. The Warrants will be exercisable beginning on the date stockholder approval is received and effective allowing exercisability of the Warrants under Nasdaq rules. The offering is expected to close on or about September 30, 2022, subject to the satisfaction of customary closing conditions.

The aggregate gross proceeds to Connexa from the private placement is expected to be approximately $5.0 million. Connexa intends to use the net proceeds from the offering for working capital purposes and to repurchase inventory.

Spartan Capital Securities LLC is acting as the exclusive placement agent in the offering. 

Pursuant to a registration rights agreement with the investor, Connexa has agreed to file a registration statement with the Securities and Exchange Commission (“SEC”) covering the resale of the unregistered shares of common stock and the shares of common stock issuable upon exercise of the…