Veritone Announces $20.3 Million Registered Direct Offering

Veritone, Inc. (NASDAQ: VERI) disclosed on January 2, 2025, that it has entered into a securities purchase agreement with Esousa Group Holdings, LLC, a New York-based family office, for a registered direct offering. The agreement entails the issuance and sale of 4,414,878 shares of Veritone’s common stock and pre-funded warrants to purchase up to 3,608,838 additional shares of common stock. The company is offering the shares at $2.53 per share, with the pre-funded warrants priced at $2.52 each, allowing for gross proceeds of approximately $20.3 million after deducting associated offering expenses.

This offering, expected to close around January 3, 2025, is subject to standard closing conditions. Veritone plans to utilize the net proceeds alongside existing funds for various purposes such as working capital, general corporate needs, capital expenditures, debt servicing, and further development of its AI platform and applications. Until 75 days following the Agreement Date, the company is restricted from issuing or announcing any shares of common stock.

The registered direct offering aligns with the terms of Veritone’s effective registration statement on Form S-3 (Registration Statement No. 333-280148) filed with the Securities and Exchange Commission (SEC) previously. The offering also includes pre-funded warrants exercisable at $0.01 per share, providing a mechanism for holders to receive the value of the shares in certain circumstances.

Further, on the same day, Veritone issued a press release regarding the pricing of this offering. The company revealed that as of December 31, 2024, it had completed sales amounting to approximately $4.5 million from the sale of 1,707,791 shares of common stock through its ATM Program. By the same date, Veritone had 40,179,855 outstanding shares of common stock.

Additionally, in connection with the Prospectus Supplement, the company has filed a legal opinion from its counsel, Cooley LLP, affirming the validity of the shares, pre-funded warrants, and warrant shares being registered.

This announcement notably impacts the financial status and strategic direction of Veritone, demonstrating a proactive approach towards capitalizing on market opportunities and strengthening the company’s financial position.

The offering presents an opportunity for Veritone to secure capital essential for its operational needs and strategic initiatives, reinforcing its commitment to sustained growth and innovation within the AI solutions industry.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Veritone’s 8K filing here.

Veritone Company Profile

Veritone, Inc, together with its subsidiaries, engages in the provision of artificial intelligence (AI) computing solutions and services in the United States, the United Kingdom, France, Australia, Israel, and India. It develops and operates aiWARE platform, an AI operating system, that uses machine learning algorithms or AI models designed to mimic human cognitive functions, such as perception, prediction, and problem solving and optimization, as well as enables users to transform unstructured data into structured data, and analyze and optimize data to drive business processes and insights.