MLSS · Milestone Scientific Inc.

Milestone Scientific Inc. entered into a securities purchase agreement to strengthen its balance sheet through a private placement financing. The transaction involved the sale of 7,962,963 units priced at $0.27 each, resulting in gross proceeds of $2.15 million. A notable aspect of this financing is the significant participation from company insiders. Directors and officers not only invested $150,000 in cash but also converted $351,000 of existing Convertible Bridge Notes into equity, signaling strong internal confidence in the company's strategic direction. The financing structure includes warrants with an exercise price of $0.3375, offering potential additional capital of up to $2.69 million if fully exercised, which would further bolster the company's financial position. The company plans to utilize the net proceeds for general working capital and to settle past due accounts payable, addressing immediate liquidity needs. To facilitate investor liquidity, the company committed to filing a registration statement for the resale of the securities within 45 days of closing. Additionally, the implementation of 12-month lock-up agreements for key stakeholders helps align long-term interests and provides stability to the shareholder base. The transaction was conducted in compliance with NYSE American rules and utilized exemptions under Section 4(a)(2) and Rule 506(b) of Regulation D.