Are there any covenants, lock‑up periods, or other restrictions attached to the exercised warrants that could influence future financing or operational flexibility?

Answer – Restrictions on the Exercised Warrants

The press release does not disclose any special covenants, lock‑up periods, or other contractual constraints attached to the warrants that were exercised. The key points that suggest a relatively unrestricted transaction are:

1. Registered‑for‑Resale Shares – The shares issued on exercise are being registered under an effective Form S‑1 registration statement. When securities are registered for resale, the issuer typically does not impose additional lock‑up provisions because the registration already satisfies the SEC’s resale requirements and provides a clear path to public trading.

2. Absence of Explicit Language – Companies normally highlight lock‑up or covenant restrictions (e.g., “subject to a 180‑day lock‑up” or “subject to debt‑covenant compliance”) in warrant‑exercise announcements. The lack of any such language in Mobix Labs’ filing strongly implies that the warrant holder is free to sell the shares immediately after the effective registration date.

3. Typical Warrant Terms – Standard warrant agreements for publicly listed companies (especially those that are not tied to a financing round or a private placement) usually contain only the exercise price, expiration date, and anti‑dilution adjustments. They rarely embed financing covenants or operating restrictions unless the warrants were issued as part of a larger financing package, which is not indicated here.

Trading Implications

• Financing Flexibility: With no lock‑up, the $4.5 million of proceeds can be used immediately for working‑capital or R&D purposes, giving the company near‑term liquidity without the need to seek additional financing. The modest size of the raise also means it will not materially affect the capital structure or trigger debt‑covenant tests.

• Share‑Supply Impact: The 5.5 million newly issued shares (≈ 0.82 % of the current float, assuming ~660 M shares outstanding) will dilute existing shareholders only marginally. Since the shares are already registered, any rapid sell‑off by the warrant holder could add short‑term selling pressure, but the impact is expected to be limited given the small proportion.

• Actionable Take‑away: Monitor the Form S‑1 filing (File No. 333‑287493) for any fine‑print that might introduce resale restrictions (e.g., “underwritten placement lock‑ups” or “restricted securities” language). In the absence of such clauses, traders can treat the warrant exercise as a clean capital infusion with minimal downside‑risk from covenant‑related financing constraints. If the share price shows a brief dip on the news, it could present a short‑term buying opportunity, especially if the broader 5G/semiconductor narrative remains bullish.