Smith Micro Software, a software company focused on mobile and wireless solutions, announced that it has entered into a securities purchase agreement expected to generate approximately $4.9 million in gross proceeds through private financing.
The investment is led primarily by a trust for which the company’s founder and chief executive officer, Bill Smith, serves as co-trustee, contributing about $4.6 million. An additional roughly $90,000 is being invested by Tim Huffmyer, the company’s chief operating officer and chief financial officer.
The financing involves the issuance of secured convertible notes with an aggregate original principal amount of about $4.9 million. The notes carry an initial conversion price of $0.68 per share, subject to adjustment. In connection with the offering, Smith Micro will also issue warrants allowing investors to acquire up to approximately 9.4 million additional shares of the company’s common stock.
Each warrant will be exercisable at a price of $0.68 per share. The warrants become exercisable six months after issuance and will expire five years later.
As part of the transaction, Smith Micro plans to repay certain outstanding notes due March 31, 2026, totaling up to $2.2 million in principal and interest, including any additional interest tied to a potential extension of their maturity date. Some holders of those notes have agreed to reinvest about $0.9 million of their repayment proceeds back into the new offering, which is included in the overall gross proceeds figure.
Smith Micro said it intends to use the net proceeds from the financing to repay the upcoming note obligations and to support general corporate purposes.
The offering is expected to close on or around March 6, 2026, subject to customary closing conditions.
