Phunware Announces Pricing Of $7M Registered Direct Offering Of 87.5M Shares Of Common Stock At A Price Of $0.08/Share, Priced At-The-Market Under Nasdaq Rules
Portfolio Pulse from Benzinga Newsdesk
Phunware, Inc. has announced a registered direct offering of approximately 87.5 million shares of common stock at $0.08 per share, aiming to raise $7 million. The offering is priced at-the-market under Nasdaq rules and is expected to close on January 18, 2024. Roth Capital Partners is the sole placement agent. The proceeds will be used for working capital, general corporate purposes, and product initiatives like monetizing its patent portfolio and its PhunCoin and PhunToken projects.
January 16, 2024 | 9:07 pm
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Phunware is conducting a direct offering of 87.5M shares at $0.08 each to raise $7M for corporate purposes and product expansion.
The direct offering of shares by Phunware is likely to result in dilution of existing shares, which typically leads to a short-term negative impact on the stock price. Investors may react to the news of dilution and the below-market pricing of the offering by selling shares, driving the price down. However, the intended use of proceeds for product initiatives and working capital could be seen as positive in the longer term.
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