Phunware Inc, a leading provider of patented Location-Based Software as a Service (SaaS) solutions and a range of products facilitating the only fully integrated enterprise cloud platform for mobile, revealed that it has entered into a definitive agreement for the issuance and sale of approximately 56,000,000 million shares of common stock at a price of $0.10 per share. Following this announcement, the stock of Phunware Inc experienced a surge in trading activity, with more than 526 million shares already changing hands. This marks a substantial increase compared to the daily average of 46 million shares.
At the time of this publication, Phunware Inc stock (PHUN) has witnessed a decline.
Phunware Inc
Current Price: $0.25
Change : +0.01
Change (%): (2.77%)
Volume: 526.9M
Source: Tomorrow Events Market Data
All the shares of common stock (and pre-funded warrants in lieu thereof) offered in this transaction have been made available by Phunware in accordance with an effective shelf registration statement on Form S-3 (File No. 333-262461), referred to as the “Registration Statement.”
Roth Capital Partners is playing a crucial role as the sole placement agent for the offering, operating on a reasonable best-efforts basis. The anticipated closing date for the offering is set for January 23, 2024, contingent upon the satisfaction of customary closing conditions.
The gross proceeds from this offering, prior to deductions for the placement agent’s fees and other associated expenses, are estimated to reach approximately $5.6 million. Phunware Inc plans to allocate the net proceeds from the sale of shares of common stock (or pre-funded warrants in lieu thereof) towards working capital and other general corporate purposes. This includes the expansion of its product initiatives, such as the monetization of its patent portfolio, PhunCoin, and PhunToken. While the company may also consider funding strategic opportunities as they arise, there are currently no pending opportunities.
The Registration Statement, which encompasses various details including the shares of common stock, pre-funded warrants, and the underlying shares of common stock for the proposed offering, was initially filed with the Securities and Exchange Commission (SEC) on February 1, 2022. The SEC declared it effective on February 9, 2022.
In summary, Phunware Inc’s latest move to issue and sell a substantial number of shares of common stock signifies a strategic financial decision. The company aims to generate significant funds, with plans to channel these resources into furthering its operational capabilities, exploring product expansion opportunities, and capitalizing on its innovative patent portfolio. As the offering progresses, all eyes will be on Phunware Inc’s future developments and the impact of this financial maneuver on its market presence.
