VERBW - VERB Closes $3 Million Non-Convertible Preferred Stock Financing | Benzinga
LOS ALAMITOS, Calif. and LAS VEGAS, Jan. 05, 2024 (GLOBE NEWSWIRE) -- Verb Technology Company, Inc. (Nasdaq: VERB) ("VERB" or the "Company"), the company behind MARKET.live, the innovative multi-vendor, multi-presenter livestream social shopping platform, announces that the Company closed a $3 million preferred stock financing. The preferred stock is non-convertible into the Company's common shares and as such is non-dilutive to current stockholders.
"I am pleased to announce that we have successfully closed a $3 million financing, uniquely structured and extremely advantageous to the Company and its shareholders," states Rory J. Cutaia, VERB CEO. "This financing positions the Company extremely well to execute our growth strategies as we begin 2024 and represents a meaningful enhancement to shareholder equity as will be reflected on our year-end balance sheet."
On December 29, 2023, the Company entered into a securities purchase agreement (the "Securities Purchase Agreement") with an existing family office investor pursuant to which the Company sold and the investor purchased 3,000 shares of the Company's newly designated non-convertible Series C Preferred Stock (the "Preferred Shares") for a total purchase price of $3,000,000. The Preferred Shares have a 10% stated annual dividend, no voting rights, and a face value of $1,300 per share. The sale of the Preferred Shares was consummated on December 29, 2023.
The Company intends to use the proceeds to drive its MARKET.live, livestream social shopping platform and for general corporate purposes. The Securities Purchase Agreement contains customary representations and warranties from the Company and the investor.
The sale of the Series C Preferred Stock pursuant to the Securities Purchase Agreement has not been registered under the Securities Act of 1933, as amended (the "Securities Act"), in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act and certain rules and regulations promulgated thereunder. This description of the Securities Purchase Agreement is only a summary and is qualified in its ...