VERB Raises $5.03 Million in Preferred Stock Equity Financing
August 16, 2019 09:00 ET | Source: Verb Technology Company, Inc.
NEWPORT BEACH, Calif. and SALT LAKE CITY, Aug. 16, 2019 (GLOBE NEWSWIRE) -- VERB Technology Company, Inc. (NASDAQ: VERB; VERBW) (“VERB” or the “Company”), a leader in business-focused interactive video sales and marketing applications and the pioneer of Augmented Sales Intelligence software, today announced gross proceeds of $5,030,000 in equity financing following the sale of Company Preferred Stock and warrants.
Pursuant to a Securities Purchase Agreement dated August 14, 2019, the Company issued 5,030 shares of its Series A Convertible Preferred Stock and granted warrants to purchase up to approximately 3.2 million shares of common stock. The sole placement agent on the financing was A.G.P./Alliance Global Partners, who also acted as the sole book-running manager for the Company’s $20.5M Public Offering that closed on April 9 of this year, and included several investors that also participated in that offering. Details of the offering can be found in the Company’s Form 10-Q filed August 14, 2019.
Net proceeds of the sale of securities, following transaction related expenses, are expected to be used for working capital purposes to fund the Company’s current growth as reflected in the August 14, 2019 Form 10-Q, which includes consolidated, pro forma unaudited financial statements showing a 37% increase in SaaS revenue for Q2 over Q1, a 32% increase in revenue and 19% increase in gross profit in the first 6 months of 2019 over the first 6 months of 2018, as well as the retirement of approximately $2.8 million in debt.
Jeff Clayborne, CFO of VERB, stated: “We are pleased to announce the closing of this offering involving many of the same participants as in our April public offering, who continue to support the execution of our business plans and objectives and believe in our ability to create long-term stockholder value. Proceeds will augment our impressive digital revenue growth as we continue to build momentum as a leader in SaaS sales and marketing applications.”
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