Veritone plunges on deep-discounted direct stock deal
VERI•Veritone agreed to sell 20 million shares in a registered direct offering for $15 million in gross proceeds. The $0.75 per-share offering price is a 37% discount to the stock’s last close.
1. Offering details
Veritone agreed to sell 20 million shares in a registered direct offering for $15 million in gross proceeds. The offering price of $0.75 per share is a 37% discount to the stock’s last close. The company plans to use net proceeds to repay and/or restructure some convertible debt and for working capital and general purposes.
2. Shares and estimates
Veritone shares were down 19.3% at $0.96 before the bell on Thursday. The company had about 100.5 million shares outstanding, and its stock had fallen 74% year to date through Wednesday. Three analysts covering the stock rated it “buy” and one rated it “hold”; the median price target was $8.
