PALT - Paltalk Inc. Announces Pricing of $10.125 Million Underwritten Public Offering of Common Stock
Jericho, NY - (NewMediaWire) - October 14, 2021 - Paltalk,Inc. (Nasdaq: PALT) (“Paltalk,” the “Company,” “we,” “our” or “us”), a leadingcommunications software innovator that powers multimedia social applications,today announced the pricing of its previously announced underwritten publicoffering of 1,350,000 shares of its common stock. Each share of common stockwas sold at a public offering price of $7.50, for gross proceeds ofapproximately $10.125 million, before deducting underwriting discounts andoffering expenses. In addition, Paltalk has granted the underwriters a 45-dayoption to purchase up to an additional 202,500 shares of common stock to coverover-allotments at the public offering price, less the underwriting discount.All of the shares of common stock were offered by the Company. The offering isexpected to close on October 19, 2021, subject to customary closing conditions.
Paltalk currently intends touse the net proceeds from the offering to fund development costs related to newand existing applications, advertising and marketing initiatives to furthergrow its applications and services, acquisitions of, or investments in,businesses or technologies that complement the business, and for workingcapital and general corporate purposes.
Maxim Group LLC is acting assole book-running manager for the offering.
The public offering is beingmade pursuant to an effective shelf registration statement on Form S-3 (FileNo. 333-260063), previously filed with the U.S. Securities and Exchange Commission(SEC) on October 5, 2021 and declared effective on October 14, 2021. Thesecurities may be offered only by means of a prospectus. A preliminaryprospectus supplement describing the terms of the public offering has beenfiled with the SEC. A final prospectus supplement will be filed with the SECand will form a part of the effective registration statement. Copies of thefinal prospectus supplement and accompanying prospectus relating to the publicoffering may be obtained, when available, by contacting Maxim Group LLC, at 300Park Avenue, 16th Floor, New York, NY 10022, Attention: Syndicate Department,or by telephone at (212) 895-3745 or by email at syndicate@maximgrp.com.
This press release shall notconstitute an offer to sell or the solicitation of an offer to buy thesesecurities, nor shall there be any sale of these securities in any state orother jurisdiction in which such offer, solicitation or sale would be unlawfulprior to the registration or qualification under the securities laws of anysuch state or other jurisdiction.
About Paltalk, Inc. (Nasdaq:PALT)
Paltalk, Inc. is acommunications software innovator that powers multimedia social applications.Our product portfolio includes Paltalk and Camfrog, which together host one ofthe world’s largest collections of video-based communities. Our other productsinclude Tinychat and Vumber. The Company has an over 20-year history oftechnology innovation and holds 18 patents.
For additional information,please visit: https://www.paltalk.com.
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Forward-Looking Statements
This press release contains"forward-looking statements." Such statements may be preceded by thewords "intends," "may," "will,""plans," "expects," "anticipates,""projects," "predicts," "estimates,""aims," "believes," "hopes,""potential," or similar words. Forward-looking statements inthis press release include statements regarding the anticipated closing of theoffering and the Company’s intended use of the net proceeds from theoffering. Forward-looking statements are not guarantees of futureperformance, are based on certain assumptions and are subject to various knownand unknown risks and uncertainties, many of which are beyond the Company'scontrol, and cannot be predicted or quantified and consequently, actual resultsmay differ materially from those expressed or implied by such forward-lookingstatements. Such risks and uncertainties include, withoutlimitation, market and other conditions and the satisfaction of customaryclosing conditions related to the offering; the Company’s ability to retain thelisting of its common stock on The Nasdaq Capital Market; the impact of theCOVID-19 pandemic on our results of operations and our business; our ability toeffectively market and generate revenue from our applications; our ability torelease new applications or improve upon or add features to existingapplications on schedule or at all; risks and uncertainties related to ourincreasing focus on the use of new and novel technologies to enhance ourapplications, and our ability to timely complete development of applicationsusing new technologies; our ability to effectively secure new softwaredevelopment and licensing customers; our ability to protect our intellectualproperty rights; the use of the internet and privacy and protection of userdata; risks related to our holdings of digital tokens, including risks relatedto the volatility of the trading price of digital tokens and our ability toconvert digital tokens into fiat currency; and our ability to manage ourpartnerships and strategic alliances. More detailed information about theCompany and the risk factors that may affect the realization of forward-lookingstatements is set forth in the Company's filings with the Securities andExchange Commission ("SEC"), including the Company's most recent AnnualReport on Form 10-K and Quarterly Reports on Form 10-Q. Investors and securityholders are urged to read these documents free of charge on the SEC's websiteat www.sec.gov.
All forward-looking statementsspeak only as of the date on which they are made. The Company undertakes noobligation to update any forward-looking statement or statements to reflectevents or circumstances after the date on which such statement was made, exceptto the extent required by applicable securities laws.
Investor Contacts:
Brian Loper
ClearThink
bloper@clearthink.capital
347-413-4234