The Company Strengthens Balance Sheet, Takes Strides to Regaining Nasdaq Listing Compliance

DENVER, CO / ACCESSWIRE / June 6, 2024 / SOBR Safe, Inc. (NASDAQ: SOBR) ("SOBRsafe" or "the Company"), provider of next-generation transdermal alcohol detection solutions, announced today that it has received approximately $2.8 million in gross proceeds from the exercise of Warrants. Details on the transaction are below, or view the corresponding Form 8-K.

SOBRsafe has also settled its remaining debt balances through the conversion of outstanding Notes Payable into 4,358,957 shares of Common Stock.

"These are very positive developments for the future of SOBRsafe," affirmed CEO & Chairman Dave Gandini. "We have significantly strengthened our balance sheet with both this infusion of capital and elimination of $2.6 million in debt, which alleviates future cash payments. Moreover, we have increased our prospective equity balances consistent with our plan to regain the Company's Nasdaq listing compliance. We continue to build flexibility into our capital structure, and believe we are now better positioned for accelerated growth."

Warrant Inducement Transaction

On June 4, 2024, the Company entered into an inducement offer letter agreement (the "Inducement Letter") with the holder (the "Holder") of the Company's warrants issued pursuant to the Amended and Restated Common Stock Purchase Warrants, with an initial exercise date of September 27, 2021, dated September 30, 2022, the Amended and Restated Common Stock Purchase Warrants, with an initial exercise date of March 30, 2022, dated September 30, 2022 and warrants issued to the Holder under the Waiver agreement dated March 30, 2022, (collectively, the "Applicable Warrants").

Pursuant to the Inducement Letter, the Holder agreed to convert all the Applicable Warrants at a reduced exercise price equal to $0.27 per share (such reduced exercise price, the "Reduced Exercise Price"). Simultaneously with the execution of the Inducement Letter, the Company received exercise notices from the Holder for the conversion of 10,319,163 of the Applicable Warrants, representing 100% of the Applicable Warrants.

The shares of common stock of the Company underlying the Applicable Warrants (the "Warrant Shares") are eligible for resale pursuant to Rule 144 of the Securities Act or have been registered for resale pursuant to registration statements on Form S-1 (File No. 333-267882) (File No. 333-262665) (the "Registration Statements"). The Registration Statements are currently effective and, upon exercise of the Applicable Warrants will be effective for the resale of the Warrant Shares.

In exchange for the transactions contemplated hereunder, the Company shall concurrently issue the Holder 20,638,326 new warrants (the "New Warrant") to subscribe for and purchase from the Company 20,638,326 shares (the "New Warrant Shares"). The New Warrant exercise price shall be $0.27 subject to adjustment thereunder.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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About SOBRsafe™

Alcohol misuse is the fourth leading cause of preventable death in America, and the seventh worldwide. Yet prevention and monitoring solutions have not kept pace with this epidemic. Legacy technologies are invasive and inefficient, unhygienic, and unconnected. There has to be a better way.

Enter SOBRsafe™. Our advanced transdermal (touch-based) technology detects and instantaneously reports the presence of alcohol as emitted through a user's skin - no breath, blood or urine sample is required. With a powerful backend data platform, SOBRsafe provides next generation, passive detection technology for the behavioral health, judicial and consumer markets, and for licensing and integration.

The SOBRsafe technology is commercially available for point-of-care screening (SOBRcheck) and continuous monitoring (SOBRsure). At SOBRsafe, we are creating a culture of prevention and support. To learn more, visit www.sobrsafe.com.

Contact SOBRsafe:
IR@sobrsafe.com

Safe Harbor Statement

This announcement includes forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements are based on management's beliefs and assumptions, and on information currently available to management. Forward-looking statements include the information concerning our possible or assumed future results of operations set forth under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations." Forward-looking statements also include statements in which words such as "expect," "anticipate," "intend," "plan," "believe," "estimate," "consider," or similar expressions are used.

Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties, and assumptions. Our future results and shareholder values may differ materially from those expressed in these forward-looking statements. Readers are cautioned not to put undue reliance on any forward-looking statements.

SOURCE: SOBR Safe, Inc.