Paltalk, Inc. (PALT) saw a downfall of 11.02% in the aftermarket after Paltalk, Inc. Announces a Pricing of $10.125 Million Underwritten Public Offering of Common Stock. However, the last trading session closed at $8.98 with an incline of 2.98%.
$10.125 Million Underwritten Public Offering
On 14th October 2021, PALT reported the Pricing of $10.125 Million Underwritten Public Offering of Common Stock. The company announced the sale of 1,350,000 shares of its ordinary stock in an underwritten public offering. Moreover, each share of common stock was sold for $7.50 in a public offering, resulting in total proceeds of about $10.125 million. PALT has also given the underwriters a 45-day option to buy up to an additional 202,500 shares of common stock at the public offering price.
PALT intends to use the net proceeds from the offering to fund development costs for prospective and current implementations, marketing and advertising proposals to further develop its software and services, mergers of or investments in complementary businesses or technologies, as well as working capital and general corporate purposes.
Proposed Public Offering of Common Stock
PALT announced on 14th October 2021 that an underwritten public offering of its common stock has started. The offering is dependent on market circumstances, and no guarantee can be given about whether or when it will be completed, or as to the exact size or terms of the offering. Paltalk also plans to provide the underwriters a 45-day option to buy up to 15% more of the company’s common stock in the public offering.
PALT aims to use the gross profits from the offering to finance operating costs for fresh and innovative applications, advertising, and marketing projects further to grow its apps and services, acquisitions of or investments in complementary businesses or technologies, as well as working capital and general corporate purposes. The offering is being managed by Maxim Group LLC as the sole bookrunner.
Lead Expanded Investor Relations Program
On 30th September 2021, ClearThink Capital, a strategic advising company, has been hired to create and implement a comprehensive investor outreach and communications campaign. The company genuinely thinks that they are now ready to join the next process of business expansion because they have a strong financial position with $6.5 million cash and no long-term debt.
Moreover, the company has raised an additional $3.5 million in link with our recent insured public offering. Since refocusing on the live video chat business, PALT had five quarters with at least $3.3 million in sales and $0.4 million in operating profits. Lastly, while they continue to focus on software development and sales growth, PALT continues to search for smart and accretive acquisitions to help us expand and profit more quickly.