SOBR Safe, Inc. (NASDAQ: SOBR) completed a private placement that will raise approximately $2 million in gross proceeds by issuing 1,290,324 shares of common stock at $1.55 per share, along with Series C and Series D warrants that allow the holder to purchase up to an aggregate of 1,290,324 shares each at an exercise price of $1.30 per share. The warrants are exercisable immediately upon issuance, giving investors the ability to lock in the current valuation right away.
The proceeds will be used to fund working capital needs and general corporate purposes, providing the company with additional liquidity to support its ongoing product development, marketing initiatives, and operational expansion in the non‑invasive alcohol monitoring market. The transaction is expected to close on or about December 29, 2025, and the placement was priced at the market under Nasdaq rules.
SOBR Safe has been raising capital on a regular basis as it scales its technology and expands its customer base. In the first two quarters of 2025, the company reported revenue growth of 80.5% and 92.3% year‑over‑year, reaching $86.6 thousand and $104.2 thousand respectively. Despite these gains, the company posted net losses of $1.9 million and $2.0 million in Q1 and Q2, and its gross margins remained healthy at 58.8% and 57.5%. The continued losses underscore the need for additional funding to bridge the gap between revenue and operating expenses as the company invests heavily in research, sales, and regulatory compliance.
CEO David Gandini emphasized that the capital raise is part of a broader strategy to accelerate market adoption. “We are building the foundation to accelerate future market adoption, delivering a 92% year‑over‑year and a 20% sequential increase in revenue,” he said. The company’s management also highlighted that the new capital will help sustain its growth trajectory while managing the dilution impact on existing shareholders.
Investors reacted strongly to the announcement, with initial enthusiasm reflecting confidence in the company’s growth prospects. However, after‑hours trading revealed concerns about dilution and the company’s ongoing net losses, indicating a cautious stance among some market participants. The event reinforces the narrative that SOBR Safe is in a high‑growth, high‑cost phase, and the private placement is a critical step to maintain liquidity while the company works toward profitability.
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