SkyAI risks SEC offer failure if SOL falls under $100

Nasdaq-listed Solana treasury company SkyAI, formerly called Sharps Technology, says it has about 80% of the cash required for a planned repurchase at $3 per share.

The offer's expected conditions include SOL closing above $100 throughout the offer period, subject to the company's waiver rights.

In its Oct. 13 SEC filing, SkyAI reported approximately 600,000 SOL retained. Its Oct. 11 announcement had reported approximately 1 million retained after recent sales of about 1 million SOL, roughly half its treasury. The disclosures give reported balances without a dated breakdown of the transactions behind them.

The proposed tender, a direct repurchase from holders, would cover up to 95% of each specified securities class: common stock, cash pre-funded warrants, cryptocurrency pre-funded warrants and strategic advisor warrants.

SkyAI expects a maximum aggregate payout of approximately $201 million, subject to final terms and applicable requirements.

If more than 95% of a class is validly tendered and not withdrawn, SkyAI expects to prorate purchases within that class. Holders would have withdrawal rights through expiration.

SkyAI expects to fund purchases with cash on hand and proceeds from the SOL sale. The $201 million figure is the proposed payout ceiling, and the announcement says the offer has no financing condition because cash plus the market value of its digital assets exceeds the maximum purchase price.