Innovative Eyewear enters warrant exercise deal expected to raise about $3.0 million

Innovative Eyewear, Inc. said it entered a definitive agreement for the immediate exercise of certain outstanding warrants covering 2,200,544 shares of common stock at a reduced exercise price of $1.35 per share, down from the original $2.60 per share. The warrants were originally issued on April 14, 2025 and June 24, 2025, and the transaction is expected to close on or about July 9, 2026, subject to customary closing conditions. In exchange for the cash exercise, the company will issue new unregistered short-term Series J warrants to purchase up to 6,601,632 shares of common stock. Those warrants will have an exercise price of $1.10 per share, will be exercisable immediately upon issuance, and will expire 24 months from the effective date of the resale registration statement. Innovative Eyewear expects about $3.0 million in gross proceeds from the warrant exercise before placement agent fees and other offering expenses. If the new Series J warrants are fully exercised on a cash basis, they could provide about $7.25 million in additional gross proceeds, though the company said there is no assurance that any of those warrants will be exercised. Net proceeds are expected to be used for working capital and general corporate purposes. H.C. Wainwright & Co. is acting as exclusive placement agent. The shares issuable upon exercise of the existing warrants are registered under effective Form S-1 registration statements, while the new Series J warrants are being issued in a private placement and have not been registered under the Securities Act of 1933 or applicable state securities laws. Innovative Eyewear said it plans to file a resale registration statement with the Securities and Exchange Commission covering the shares issuable upon exercise of the new warrants. The company describes itself as a developer and retailer of ChatGPT-enabled smart eyewear under the Lucyd, Nautica, Eddie Bauer and Reebok brands.