Banzai Secures $5 Million in Funding Through Private Placement

Banzai Secures $5 Million in Funding Through Private Placement

In a significant move for financial growth, Banzai International, Inc. (NASDAQ: BNZI), a prominent marketing technology company, has announced a private placement aimed at raising $5 million. This funding will be utilized to bolster their financial capacity and enhance working capital, essential for their growth strategy.

Details of the Private Placement

The company is set to issue 1,176,471 shares of Class A common stock, along with Series A and Series B warrants. The purchase price for this offering is stated at $4.25 per share, reflecting at-the-market pricing under the rules of the Nasdaq Stock Market. Investors will also have the opportunity to purchase short-term Series B warrants, which will have a defined expiry period of 18 months.

Warrant Details

The Series A warrants will be exercisable immediately at an exercise price of $4.00 per share and will remain valid for a five-year period post-issuance. Meanwhile, the Series B warrants will also have the same exercise price but will be focused on short-term investment timelines. This structured offering is designed to appeal to a range of investors looking for opportunities in the tech sector.

The Role of H.C. Wainwright & Co.

H.C. Wainwright & Co. has stepped in as the exclusive placement agent for this offering, assisting Banzai in navigating the complex fundraising landscape. Their expertise will play a vital role in ensuring a successful closing of this transaction, which is anticipated to occur soon, pending customary conditions.

Financial Utilization of the Proceeds

Banzai has articulated its intended use of the net proceeds from this private placement, primarily focusing on repaying its existing credit facility with Yorkville Advisors. This move not only strengthens their balance sheet but also positions Banzai for future expansion initiatives. Furthermore, funds will be allocated for general corporate purposes, ensuring the company maintains a robust operational capacity.

Market Position and customer base

As a leading marketing technology firm, Banzai serves a diverse clientele, including well-known names such as Square and Hewlett Packard Enterprise. This substantial backing from established companies exemplifies the trust and efficacy of Banzai’s offerings. Their loyalty to their clients is reflected in their continued efforts to improve marketing and sales solutions across various industries.

Company Overview

Banzai is dedicated to empowering businesses of all sizes through innovative marketing strategies. Their goal is to facilitate targeted engagement and effective measurement of both new and existing customers. With several high-profile partnerships, Banzai looks to leverage its technology to help more companies flourish in their respective markets.

Investor Outreach

For more detailed insights into Banzai’s strategies and financial performance, stakeholders can reach out to their Executive Vice President, Chris Tyson. He is available at 949-491-8235, or via email at BNZI@mzgroup.us. For further corporate information, interested parties are encouraged to navigate to their investor relations platform.

Frequently Asked Questions

What is the amount raised through the private placement?

Banzai has initiated a private placement to raise approximately $5 million.

Who is the placement agent for this offering?

H.C. Wainwright & Co. is serving as the exclusive placement agent for the private placement.

What will the proceeds from this offering be used for?

The net proceeds will primarily pay down existing credit facilities and fund general corporate needs.

What is the duration of the issued warrants?

The Series A warrants will expire five years after issuance, and Series B warrants will expire after 18 months.

When is the closing expected for this offering?

The closing of the offering is expected around the end of September 2024, pending standard conditions.

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