Sobr Safe Stock Rockets 121% Premarket After Firm Withdraws Contemplated Public Offering

Shares of alcohol detection technology firm Sobr Safe ($SOBR) soared over 121% in Friday’s pre-market session as of 6:44 a.m. ET after the company withdrew a contemplated public offering.

Sobr Safe’s technology is deployed across a variety of applications, including substance abuse, mental health, co-parenting trust, occupational safety, judicial, fleet management, among others.

The firm’s technology named SOBRcheck detects and instantaneously reports the presence of alcohol as emitted through the pores of a fingertip.

Sobr Safe has requested the SEC’s consent to withdraw its registration statement initially filed on Sept. 12, 2024.

Following the announcement, SOBR shares ranked among the top three trending tickers on Stocktwits on Friday morning. Majority of the retail investors on Stocktwits are expressing optimism on the stock.

Earlier this month, the firm had closed its private placement with institutional investors through which it raised gross proceeds of $8.2 million. The firm had said it intends to use the net proceeds from the private placement for general corporate purposes and working capital.

In late September, the firm had announced a 1-for-110 reverse stock split. The move was aimed at increasing the per share market price of its common stock to regain compliance with Nasdaq's minimum bid price requirement for continued listing on The Nasdaq Capital Market.

This came after The Nasdaq Hearings Panel granted the firm an exception period continuing the listing of its common stock on The Nasdaq Stock Market. “SOBRsafe has until October 23, 2024 to execute its plan to regain compliance with Nasdaq's $1.00 minimum bid price per share requirement, and to demonstrate long-term compliance with the required minimum of $2.5 million in stockholders' equity,” it had said.

Meanwhile, SOBR shares have posted disappointing returns this year. Without considering Friday’s pre-market pop, the stock is down over 85% on a year-to-date basis.

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