Banzai Secures $5 Million in New Private Placement Funding
Banzai Secures Funding Through Private Placement
Banzai International, Inc. (NASDAQ: BNZI), a recognized leader in marketing technology, has recently secured a private placement agreement to raise $5 million. This funding strategy enables the company to reinforce its financial foundation while pursuing its growth initiatives.
Details of the Private Placement Arrangement
The arrangement involves the sale of 1,176,471 shares of Class A common stock, complete with accompanying Series A and short-term Series B warrants. Each Class A share is priced at $4.25. The Series A warrants will allow holders to purchase shares at $4.00 each, with a five-year expiration timeline. Conversely, the short-term Series B warrants will also have the same exercise price but will expire in a shorter 18-month period.
Purpose and Utilization of Proceeds
The capital raised through this private placement will primarily be utilized to eliminate the company’s existing outstanding credit facility with Yorkville Advisors. Following this repayment, the remaining funds will be allocated towards working capital and various corporate needs to promote sustained growth and operational success.
Banzai’s Growth Trajectory and Market Position
As a marketing technology company, Banzai is dedicated to helping businesses target, engage, and measure their marketing performance effectively. With a client roster that includes prominent names like Square and Hewlett Packard Enterprise, the company is well-positioned in its industry. Its mission revolves around facilitating success for its users through innovative solutions that cater to businesses of all sizes.
Investment Considerations
The securities involved in the private placement are provided under Section 4(a)(2) of the Securities Act of 1933, which carries specific conditions and allows certain exemptions. As such, the associated warrants and underlying shares will not be registered under the Securities Act, indicating that they cannot be openly sold in the United States until further regulations are satisfied. In conjunction with their investors, Banzai has committed to filing a resale registration statement that will cover these securities.
About Banzai International, Inc.
Banzai is committed to revolutionizing marketing solutions. The company enables its clients to enhance customer relationships through contained marketing strategies that truly resonate. With thousands of satisfied customers, including notable brands and businesses, Banzai has made its mark in the market.
Frequently Asked Questions
What is the purpose of Banzai’s recent private placement?
The private placement aims to raise funds to pay off outstanding debts and support continued operational efforts.
How much capital is Banzai raising through this arrangement?
Banzai is raising a total of $5 million through this private placement.
What securities are included in this private placement?
The private placement consists of shares of Class A common stock alongside Series A and Series B warrants.
Who is acting as the placement agent for the offering?
H.C. Wainwright & Co. is serving as the exclusive placement agent for this funding initiative.
What is Banzai's mission?
Banzai’s mission is to assist businesses of all sizes in effectively targeting, engaging, and measuring their customers.
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