8 million in cash
NEWS
LQR House Initiates Warrants Cancellation and Commits to Postpone Public Offerings for the Foreseeable Future
MIAMI BEACH, FL / ACCESSWIRE / December 20, 2023 / LQR House Inc. (the "Company" or "LQR House") (NASDAQ:LQR), a niche ecommerce platform specializing in the spirits and beverage industry, has declared a significant step by cancelling representative warrants to bolster shareholder confidence. The Company is also committing to a hiatus on offerings and capital raises, redirecting its efforts toward expanding its e-commerce presence and cultivating marketing partnerships. With approximately $8 million in cash reserves, LQR House believes that the Company can preserve cash flow, sustain business growth, and prioritize profitability.
On December 16, 2023, LQR House and designees of EF Hutton LLC ("EF Hutton") entered into several agreements to cancel EF Hutton's representative warrants to purchase a total of 9,335,696 shares of the Company's common stock. These warrants had been issued to EF Hutton designees in three public offerings of the Company's common stock completed since August 11, 2023, with exercise prices ranging from $5.00 per share to $0.07 per share, encompassing all outstanding warrants of the Company. In consideration for the cancellation, LQR House agreed to compensate EF Hutton designees a total of $60,000.
Given the current business environment, LQR House has also opted to delay further offerings and capital raises at this time, choosing instead to explore ventures that may enhance Company's value. This strategic decision aligns with the Company's dedication to prudent financial management and long-term value creation for its shareholders.
Sean Dollinger, Chief Executive of LQR House, emphasized the significance of this move, stating, "We believe, that canceling all outstanding warrants at a discount to the market price provides LQR House with a unique opportunity to enhance shareholder protection. This action actively prevents additional dilution, reinforcing our commitment to executing promises to our shareholders. With the completion of these transactions, LQR House is now warrant-free, which, we believe, helps alleviating investor concerns about the financial structure of the Company. In our view, this step allows them to focus on the strong fundamentals of our business. As LQR House continues its growth through product and service expansion, exploring various acquisition and business development opportunities, we anticipate that this move sets the stage for more favorable terms in future transactions with financial and strategic
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