Empery Digital Finalizes $25M Registered Direct Offering at Premium, Reduces Debt, Issues Warrants

summarizeSummary

Empery Digital Inc. has finalized a $25 million registered direct offering, selling common stock and warrants at a premium to its recent market price, with proceeds primarily allocated to debt reduction, despite potential future dilution from the issued warrants.

check_boxKey Events

• Finalizes $25 Million Registered Direct Offering

  Empery Digital Inc. has finalized a registered direct offering to certain investors, generating gross proceeds of approximately $25 million. This prospectus supplement provides the full details of the offering initiated on March 23, 2026.

• Offering Priced at a Premium to Market

  The offering includes 2,558,422 shares of common stock sold at $5.39 per share, which is a premium compared to the last reported sale price of $4.27 on March 20, 2026.

• Includes Pre-Funded and Common Warrants

  The offering also includes pre-funded warrants to purchase 2,079,797 shares of common stock (exercise price $0.00001) and common warrants to purchase 4,638,219 shares of common stock (exercise price $6.27), which are immediately exercisable.

• Significant Potential Dilution

  If all common stock, pre-funded warrants, and common warrants issued in this offering were exercised, it would result in the issuance of 9,276,438 new shares, representing approximately 32.6% dilution based on 28,451,553 shares outstanding prior to the offering.

auto_awesomeAnalysis

This prospectus supplement finalizes the detailed terms and pricing of the $25 million registered direct offering previously announced on March 23, 2026. The offering is notable as it is priced at $5.39 per share, a significant premium to the last reported sale price of $4.27. This premium pricing, coupled with the use of net proceeds to reduce approximately $40 million in outstanding debt, strengthens the company's balance sheet and aligns with its stated strategy of optimizing capital structure by issuing equity at a premium to net asset value. However, the offering includes a substantial number of pre-funded and common warrants, which, if fully exercised, could lead to significant future dilution for existing shareholders. Investors should weigh the immediate financial strengthening against the potential long-term dilutive impact.