Upexi stock surges after closing $150 million convertible note placement
Upexi, Inc. (NASDAQ:UPXI) stock surged 13% on Thursday following the announcement that the company has closed a private placement of convertible notes worth approximately $150 million. This offering is part of a previously announced $200 million concurrent financing initiative, News.az reports citing BBC.
The convertible notes were issued in exchange for locked and spot Solana (SOL) cryptocurrency and carry a 2.0% interest rate payable quarterly, with a fixed conversion price of $4.25 per share and a 24-month maturity. The notes are collateralized by SOL provided by the respective holders.
This financing round includes the $150 million note offering alongside a previously disclosed $50 million private placement of common stock, resulting in approximately $200 million in gross proceeds before deducting placement agent fees and other expenses.
Big Brain Holdings led the investment in the note offering, which was joined by additional institutional investors. A.G.P./Alliance Global Partners (NYSE:GLP) served as the sole placement agent for the transaction.
As a result of the note offering, Upexi has significantly expanded its Solana treasury. The company now holds approximately 1.65 million SOL, more than doubling its previously reported balance of 735,692 SOL.
Upexi specializes in the development, manufacturing, and distribution of consumer products and has recently diversified into the cryptocurrency space.
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