- Verb Technology ( NASDAQ: VERB ) shares fell 8% premarket on Wednesday after the company announced a ~$4M securities offering.
- The firm entered into securities purchase agreements with institutional investors for the purchase and sale of 12.5M shares of the company’s common stock and warrants to purchase up to 12.5M common shares. The combined purchase price for one common share and one warrant will be $0.32.
- The warrants will have an exercise price of $0.34/share, will be exercisable six months following the date of issuance and will expire five years from the initial date of exercise.
- Gross proceeds from the offering will be ~$4M; net proceeds from the offering will be used for working capital and other general corporate purposes.
- The offering is expected to close on or about October 28, 2022.
- The company has also amended the terms of the warrants issued to certain institutional investors in the April 2022 registered direct offering that are also purchasing shares in this offering to reduce the exercise price of such warrants to $0.34 and to provide that the warrants will be exercisable commencing six months from the date of the amendment.
For further details see:
Verb Technology stock dips ~$4M securities offering