Phunware (NASDAQ: PHUN) shares fell in the extended trading Friday following the disclosure of the pricing details for a registered direct offering of $5.6 million.
Phunware (PHUN) has officially agreed to issue and sell around 56,000,000 (56 million) shares of common stock at a rate of $0.10 per share. This move is part of a definitive agreement with all the shares offered by Phunware, as per their effective shelf registration statement on Form S-3 (File No. 333-262461).
Roth Capital Partners is acting as the sole placement agent for this offering, working on a reasonable best-efforts basis. The offering is set to conclude around January 23, 2024, pending the satisfaction of customary closing conditions.
The gross proceeds from the offering are expected to reach around $5.6 million, though this sum is before accounting for the placement agent’s fees and other associated expenses.
Phunware (NASDAQ: PHUN) plans to utilize the net proceeds for working capital and other general corporate purposes. These include expanding its product initiatives, such as monetizing its patent portfolio, PhunCoin, and PhunToken.
Investors should note that this offering will increase the total number of outstanding shares of PHUN stock. In addition, the stock is priced below its prior closing price of 24 cents. These factors contributed to the stock’s decline on Friday.
Following a nearly 5% increase during regular trading hours on Friday, PHUN stock witnessed a 2.17% decline in after-hours trading. The closing price for the stock stood at $0.25.
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