Owlet, Inc. Announces 1-For-14 Reverse Stock Split Will Become Effective

Owlet, Inc. (NYSE: OWLT) (“Owlet” or the “Company”) today announced that the previously announced 1-for-14 reverse stock split (“Reverse Split”) of its Class A common stock, $0.0001 par value per share (“Common Stock”), will become effective at 5:00 p.m. EDT today, July 7, 2023. The shares of the Company’s Common Stock will begin trading on the New York Stock Exchange (“NYSE”) on a split-adjusted basis when markets open on Monday, July 10, 2023 under the existing trading symbol “OWLT” and new CUSIP number: 69120X206.

The Company expects that the Reverse Split will allow the Company to regain compliance with the $1.00 minimum average closing price requirement of the NYSE.

The Reverse Split will reduce the number of issued and outstanding shares of Common Stock from approximately 118,078,000 to approximately 8,434,142. The number of authorized shares of Common Stock will be reduced from 1,000,000,000 shares to 107,142,857 shares, which reflects a reduction to 1.5 times the current number of authorized shares of Common Stock, divided by the Reverse Split ratio. The 30,000 shares of Series A convertible preferred stock currently issued and outstanding will not be reduced by the Reverse Split, but the rate at which these shares are convertible into Common Stock will be adjusted in accordance with the Certificate of Designation for the Series A convertible preferred stock. The Reverse Split will also reduce the number of authorized but unissued shares of preferred stock from 99,970,000 shares to 10,711,071 shares, which reflects a reduction to 1.5 times the current number of authorized but unissued shares of preferred stock, divided by the Reverse Split ratio. All other outstanding options, warrants, and other securities entitling their holders to purchase or otherwise receive shares of Common Stock will be adjusted as a result of the Reverse Split, as required by the terms of each security. The number of shares available to be awarded under the Company’s equity incentive plans will also be appropriately adjusted. Following the Reverse Split, the par value of the Common Stock will remain unchanged at $0.0001 par value per share. No fractional shares will be issued in connection with the Reverse Split, and stockholders who would otherwise be entitled to receive a fractional share will instead receive a cash payment equal to the fraction of a share of Common Stock in lieu of such fractional share.