Phunware (NASDAQ: PHUN) stock nosedived by almost 17% on Wednesday after the company revealed pricing for a $10 million public offering.
Phunware (PHUN) has disclosed the details of its forthcoming public offering. The firm will offer 40 million shares of its common stock for $0.25 per share, with the closing of the offering anticipated around February 9, 2024, contingent upon customary closing conditions.
The company expects a $10 million gross proceeds from this offering, excluding fees and other associated expenses. It has earmarked the net proceeds for working capital and general corporate purposes, including various initiatives such as product expansion, monetizing its patent portfolio, and developing PhunCoin and PhunToken.
Roth Capital Partners will serve as the exclusive placement agent for the offering on a “reasonable best-efforts” basis. The shares being offered are part of a shelf registration statement that Phunware previously filed and is currently effective.
Phunware aims to utilize its technologies to achieve unmatched connectivity and monetization by engaging with brands, mobile consumers, partners, and digital asset holders. With the launch of Phunware 3.0, the firm aims to expand its audience across software products and services, capitalize on its intellectual property, and overhaul its digital asset ecosystem for existing and new market participants.
Phunware (NASDAQ: PHUN) Stock Price Action
PHUN stock plummeted -12.13% to close at $12 on Wednesday. The traders had exchanged hands with 196,266,301 (196.26 million) shares compared to the average daily trading volume of 116.45 million.