Laser Photonics (LASE) said Friday it entered into definitive agreements for the immediate exercise of outstanding warrants to purchase about 2.5 million common shares, expecting about $2.5 million in gross proceeds.

The warrants have an exercise price of $0.975 per share, before deducting placement agent fees and estimated offering expenses, the company said.

The company will issue new unregistered Series A-7 warrants for up to 800,000 shares and Series A-8 warrants for up to about 4.3 million shares to the participating investors, Laser Photonics said.

Laser Photonics expects the offering to close around Monday and will use the net proceeds for working capital and general corporate purposes, it said.

Shares of the company were down 20% in Friday premarket trading.