My Size Secures $10M Equity Line of Credit with Square Gate Capital
MYSZ sits 19% above its 52-week low of $0.33 on light trading volume (0.1× avg).
Summary
My Size, Inc. entered into a $10 million equity line of credit with Square Gate Capital, providing a funding lifeline but at highly dilutive terms, including discounted share sales and a stock-based commitment fee.
Key Events · Financing and Capital Events · MYSZ
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$10M Equity Line Secured
A 36-month Equity Purchase Agreement with Square Gate Capital now allows My Size to sell up to $10 million of common stock at its discretion.
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Highly Dilutive Pricing Terms
The investor buys at a discount: Regular Puts are priced at 96.5% of the lowest daily VWAP over a 3-day period, while Intraday Puts are set at 100% of the lowest traded price during a 15-minute window.
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Commitment Fee Paid in Stock
A $100,000 commitment fee was paid via 269,229 shares, with a true-up provision that could require additional shares if the stock price drops by the time the registration statement is effective.
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Exchange Cap Limits Immediate Dilution
Issuance is capped at 1,024,597 shares, or 19.99% of outstanding, unless stockholder approval is obtained or the Average Price stays at or above $0.3706, limiting near-term dilution but also capital access.
Analysis · MYSZ · Technology
Facing a going concern warning and limited cash, My Size, Inc. has secured a critical lifeline through a $10 million equity purchase agreement with Square Gate Capital, granting the company the right to sell shares over 36 months. The terms, however, are highly dilutive: shares are sold at a discount to market—96.5% of the lowest VWAP for regular puts—and the investor receives a $100,000 commitment fee in stock. Without stockholder approval, issuance is capped at 1.02 million shares, or 19.99% of outstanding, which limits immediate dilution but also restricts the amount of capital that can be raised unless the stock price stays above $0.3706. While this financing is essential for survival, it will likely pressure the stock as shares are sold into the market.
At the time of this filing, MYSZ was trading at $0.39 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.9M. The 52-week trading range was $0.33 to $1.48. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.