Phunware launches underwritten public offering to raise gross proceeds of approximately $25M

Phunware, Inc. (NASDAQ:PHUN), a fully-integrated enterprise cloud platform for mobile that provides products, solutions, data and services for brands worldwide, has launched an underwritten public offering of 11,111,111 shares of its common stock at a price to the public of $2.25 per share.

The company has also granted the offering’s underwriters a 30-day option, solely to cover over-allotments, if any, to purchase up to 1,666,666 additional shares of its common stock at the public offering price, less underwriting discounts and commissions.

READ: Phunware announces 2021 roadmap for commercial launch of its blockchain-enabled Customer Data Platform and Mobile Loyalty Ecosystem

The gross proceeds to the company from the public offering, before deducting underwriting discounts and offering expenses payable by the company, are expected to be approximately $25 million, assuming the underwriters’ option is not exercised. 

Phunware intends to use the net proceeds from the public offering to satisfy obligations to redeem outstanding convertible debt and for working capital and general corporate purposes.

Northland Securities Inc. and Roth Capital Partners are acting as joint book-running managers for the offering. The offering is expected to close on February 17, 2021, subject to customary closing conditions.

At the end of January, Phunware announced its 2021 roadmap for the commercial launch of its blockchain-enabled Customer Data Platform (CDP) and Mobile Loyalty Ecosystem. 

The company said its Multiscreen-as-a-Service (MaaS) CDP is a cloud-based, proprietary algorithm-enabled solution that aggregates and organizes customer data across a variety of touchpoints in real-time to create persistent and unified customer databases. 

In tandem, the group’s MaaS Mobile Loyalty Ecosystem seamlessly integrates Phunware’s MaaS Mobile Engagement and MaaS Location Based Services (LBS) software to enable one-to-one consumer interactions that drive profitable behavior and further enrich these customer databases. 

Contact the author at [email protected]

Story by ProactiveInvestors