Owlet Sells Smart Sock Business for $10M

TL;DR

Owlet sold its Smart Sock biz for $10M to focus on Dream platform.

AI Summary

Owlet, Inc. announced on August 20, 2024, that it has entered into a definitive agreement to sell its Smart Sock business to an affiliate of InnovaCare Health for $10 million in cash. This strategic divestiture is expected to allow Owlet to focus on its growing Dream platform and other initiatives.

Why It Matters

This sale allows Owlet to streamline its operations and concentrate on its more promising Dream platform, potentially leading to future growth and profitability.

Risk Assessment

Risk Level: medium — The sale of a core business segment introduces uncertainty about future revenue streams and the success of the remaining platform.

Key Numbers

• $10.0M — Smart Sock Business Sale Price (Cash proceeds from the divestiture to InnovaCare Health affiliate.)

Key Players & Entities

• Owlet, Inc. (company) — Registrant
• InnovaCare Health (company) — Acquiring entity's affiliate
• $10 million (dollar_amount) — Sale price of Smart Sock business
• August 20, 2024 (date) — Date of definitive agreement

FAQ

Key Financial Figures

• $0.0001 — hich registered Class A Common Stock, $0.0001 par value per share OWLT New York Stoc
• $50 million — under the NYSE Listed Company Manual of $50 million over a consecutive 30 trading-day avera
• $54 million — market capitalization was approximately $54 million. The information contained in, or inc

Filing Documents

• owlt-20240820.htm (8-K) — 26KB
• owlt-20240820_g1.jpg (GRAPHIC) — 34KB
• 0001628280-24-038103.txt ( ) — 272KB
• owlt-20240820.xsd (EX-101.SCH) — 2KB
• owlt-20240820_def.xml (EX-101.DEF) — 16KB
• owlt-20240820_lab.xml (EX-101.LAB) — 28KB
• owlt-20240820_pre.xml (EX-101.PRE) — 17KB
• owlt-20240820_htm.xml (XML) — 3KB

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. On August 20, 2024, holders of the Series A convertible preferred stock ("Series A Preferred Stock") of Owlet, Inc. (the "Company") elected to convert an aggregate of 15,721 shares of Series A Preferred Stock in exchange for an aggregate of 2,291,686 shares of the Company's Class A common stock ("common stock"), all as in accordance with the terms of the Certificate of Designation relating to the Series A Preferred Stock. Following such conversion, the Company had 11,710,310 shares of common stock, 11,479 shares of Series A Preferred Stock and 9,250 shares of Series B convertible preferred stock issued and outstanding. The converting holders of Series A Preferred Stock have communicated to the Company that the election to convert a portion of shares of Series A Preferred Stock was due to the continued positive progress of the Company's business and operating results, an initial step in simplifying the Company's capital structure, and part of a coordinated effort by the Company to help ensure it regains compliance with the global market capitalization requirement under the NYSE Listed Company Manual of $50 million over a consecutive 30 trading-day average. Following this conversion and based on the closing price for the common stock on August 21, 2024, the company's market capitalization was approximately $54 million. The information contained in, or incorporated into, this Item 7.01 of this Current Report shall not be deemed "filed" for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act or the Exchange Act regardless of any general incorporation language in such filings. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorize

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View this 8-K filing on SEC EDGAR