Singing Machine Announces Pricing for $4 Million Public Offering and Going Public on Nasdaq Capital Market Under New Ticker “MICS”


Singing Machine, Inc.

Fort Lauderdale, Fla., May 23, 2022 (GLOBE NEWSWIRE) — The Singing Machine Company, Inc. (“Singing Machine” or the “Company”) (OTCQX: SMDM) – the global leader in consumer karaoke products today announced today priced its underwritten public offering of 1,000,000 common shares at a public price of $4.00 per share, for aggregate gross proceeds of $4 million, before deducting subscription discounts and offer. Pricing occurs following a 1-for-30 reverse stock split, which became effective at 5:30 p.m. on May 23, 2022. Based on closing price of $0.1865 per share ordinary share price of the Company on May 23, 2022, the price per share after the split was $5.595.

In addition, the Company granted Aegis Capital Corp. (“Aegis”) a 45-day option to purchase up to an additional 150,000 common shares, equal to 15% of the number of shares sold under the offering solely to cover over-allotments, if any. The public purchase price per additional common share will be $4.00 per share. If Aegis exercises the full option on the common shares, the aggregate gross proceeds of the offering, including the over-allotment, are expected to be approximately $4.6 million before deducting underwriting discounts and fees and offer fee. The offering is expected to close on or about May 26, 2022, subject to customary closing conditions.

The Company also announced that, in connection with the offering, its common stock has been approved for listing on the Nasdaq Capital Market and will begin trading on the Nasdaq Capital Market under the symbol “MICS” on May 24, 2022.

Aegis Capital Corp. acts as the sole bookrunner for the Offering.

A registration statement on Form S-1 (No. 333-264277) relating to the securities sold pursuant to this offering was declared effective by the Securities and Exchange Commission (the “SEC”) on May 23, 2022. offering is pending solely by means of a prospectus. Copies of the final prospectus may be obtained, when available, from the SEC’s website, www.sec.govor by contacting Aegis Capital Corp., Attention: Syndicate Department, 810 7th Avenue, 18th Floor, New York, NY 10019, by email at [email protected]or by phone at (212) 813-1010.

This press release does not constitute an offer to sell or a solicitation of an offer to buy, and there will be no sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful. prior to registration or qualification. under the securities laws of such state or territory.

About the singing machine

singing machine® is the leading supplier of karaoke products to consumers around the world. The company offers the widest range of home and car karaoke entertainment products in the industry, allowing consumers to find a machine that suits their needs and skill level. The Company’s products are sold in more than 25,000 locations worldwide, including well-known retailers such as Amazon, Costco, Sam’s Club, Target and Walmart. As the most recognized karaoke brand, Singing Machine products incorporate the latest technology and provide access to over 100,000 songs to stream through its mobile app and select WiFi-enabled products. To find out more, visit www.singingmachine.com.

Safe Harbor Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. ‘fine. Words such as “may”, “could”, “expect”, “plan”, “intend”, “plan”, “believe”, “predict”, “anticipate”, “hope” , “estimates” and variations of similar words and phrases are intended to identify forward-looking statements. These statements involve known and unknown risks and are based on various assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results (including the anticipated benefits of the offering described herein) may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the risk factors described in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statements.

Contact with Investor Relations:

Brendan Hopkins

(407) 645-5295

[email protected]

www.singingmachine.com

www.singingmachine.com/investors