Smith Micro Software Inc. (NASDAQ: SMSI) entered into inducement letter agreements on June 11, 2026, with holders of existing warrants to purchase 487,349 shares of common stock.

The warrant holders agreed to exercise their warrants at a reduced price of $3.35 per share, down from the original exercise price of $5.20 per share. The original warrants were issued around October 2, 2024, and became exercisable beginning April 2, 2025.

In exchange for the reduced exercise price, Smith Micro agreed to issue new warrants to purchase the same number of shares at an exercise price of $3.80 per share. The new warrants are immediately exercisable and have a five-year term from issuance.

The transaction generated approximately $1.6 million in gross proceeds before deducting offering expenses. The company stated it expects to use the net proceeds for working capital and general corporate purposes.

Smith Micro committed to file a registration statement for the resale of shares issuable under the new warrants within 30 days of the agreement date. The company agreed to use commercially reasonable efforts to make the registration statement effective within 60 days, or 90 days if the Securities and Exchange Commission conducts a full review.

The transaction closing is expected around June 15, 2026, subject to customary closing conditions. The resale of shares from the original warrants is registered under a Form S-1 registration statement that became effective November 8, 2024.