Veritone, known by radio and TV industry C-Suiters as a provider cloud-based artificial intelligence analytics and cognitive solutions, has closed its underwritten public offering.
The Orange County, Calif.-based company on Monday (6/25) sold 1.7 million shares of its common stock at a public offering price of $18 per share.
On Tuesday, Veritone sold 255,000 shares of its common stock pursuant to the underwriters’ exercise of their option in full.
The aggregate gross proceeds to Veritone from this offering “are approximately $35.2 million,” before deducting underwriting discounts and commissions and other estimated offering expenses payable by Veritone, the company said immediately after Tuesday’s Closing Bell on Wall Street.
The stock offering, clearly designed to give Veritone more cash with which to operate, was met with a largely negative reaction from its stockholders. On June 13, Veritone was trading at $24.45. Today, a 45-cent drop puts VERI at $17.73.
It’s been a rollercoaster 12 months for Veritone, with its shares sliding to $12.72 on March 1 after spending most of fall 2017 in the mid-$20 range. In September, VERI shares enjoyed a meteoric rise to $56.28.
Veritone now carries a 1-year target estimate of $25 per share.
JMP Securities LLC and Roth Capital Partners acted as book-running managers for the public offering.
Craig-Hallum Capital Group LLC, D.A. Davidson & Co. and Northland Securities, Inc. acted as co-managers for the offering.