SuperCom Announces Pricing Of $2.9M Registered Direct Offering, The Combined Effective Purchase Price For One Ordinary Share And A Warrant To Purchase One Ordinary Share Will Be $0.36.
Portfolio Pulse from Benzinga Newsdesk
SuperCom (NASDAQ:SPCB) has announced a $2.9M registered direct offering at an effective purchase price of $0.36 per share, including warrants. The offering involves the sale of 8,116,155 ordinary shares or pre-funded warrants, with concurrent issuance of warrants to purchase an equal number of shares, exercisable at $0.38. Maxim Group LLC is the placement agent, with the offering expected to close by April 19, 2024.
April 18, 2024 | 12:37 pm
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SuperCom's direct offering at a low price may dilute current shareholders but provides capital for growth. Warrants could lead to future dilution.
The direct offering at a low price point indicates potential dilution for current shareholders, which could negatively impact the stock price in the short term. However, the capital raised is likely aimed at funding growth initiatives, which could be positive in the long term. The issuance of warrants also introduces the possibility of future dilution, depending on the exercise of these warrants.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100