Jupiter Wellness, Inc. (JUPW) stock prices were down 15.45% as of the market closing on July 21st, 2021, bringing the price per share down to USD$2.79 at the end of the trading day. Subsequent premarket fluctuations saw the stock plummet by another 21.15%, bringing it down to USD$2.20.
JUPW Public Offering
July 21st, 2021 saw the company announce the pricing of its underwritten public offering, wherein the company will issue 11,066,258 shares of its common stock at a value of USD$0.001 per share. The offering will be bolstered by 540,884 shares of common stock that will be issued by various selling stockholders of the company to the public at a price of USD$2.79, as well as by warrants to purchase up to another 11,607,142 shares of common stock. Each warrant will be priced at USD$0.01 and will be exercisable upon issuance with an exercise price of USD$2.79 per share. The warrants are set to expire five years from the date of issuance.
Details of the Offering
JUPW anticipates generating USD$32.5 million in gross proceeds from the public offering, before the deduction of expenses related to the offering. Furthermore, the agreement comes equipped with a 45-day option for underwriters to issue and sell additional shares of common stock in the amount of 15% of the number of shares solid in the base offering, as well as warrants amounting to 15% of the warrants offered in the base offering. Should the over-allotment option be exercised, the company anticipates generating USD$37.4 million in total gross proceeds.
Partnership with Rigour International LLC
The company announced a multi-year agreement with Rigour International LLC on July 19th, 2021, wherein the partner was granted exclusive authorized distributor rights of Jupiter Wellness Products in Mainland China as well as a non-exclusive distributor for Hong Kong, Korea, and southeast Asian markets. As per the agreement, Rigour International will be granted the exclusive right to distribute, commercialize, and sell Comfort Cream, Canisun Sunscreen Products, Radiant Relief, Fit CBD, Temple Tonic, and other related topical skincare Jupiter Wellness brands in China.
About Rigour Intl LLC
The partnering company’s main operational center is based out of Zhengzhou China and is a leading developer and manufacturer of skincare, cosmetics, beverages, novel dietary supplements, and wellness products. It addressed a market consisting of more than 300 million consumer based in Asia via its extensive distribution channels and partnership networks.
Future Outlook for JUPW
Armed with its latest strategic partnership, the company is poised to capitalize on making use of its added capital raised through its public offering. JUPW is keen to continue its trajectory of success by consolidating and expanding its market footprint in Asia. Investors are hopeful that management will continue to drive in significant and sustained increases in shareholder value.