AudioEye Announces Launch of Public Offering of Common Stock

Rhea-AI Summary

AudioEye, Inc. (NASDAQ: AEYE) announced the launch of an underwritten public offering of its common stock on August 26, 2020. The company may grant underwriters a 30-day option to purchase an additional 15% of the shares sold. Proceeds from the offering will be used for working capital and general corporate purposes. A registration statement was filed with the SEC, with the preliminary prospectus supplement detailing the offering available through B. Riley FBR. The company emphasizes that the offering's completion and terms are subject to market conditions.

Positive

• Proceeds will be used for working capital and corporate purposes.
• Underwriters have an option to purchase an additional 15% of shares.

Negative

• Offering may lead to shareholder dilution.
• Market conditions may affect the completion and terms of the offering.

TUCSON, Ariz., Aug. 26, 2020 /PRNewswire/ -- AudioEye, Inc. (NASDAQ: AEYE) ("AudioEye" or the "Company"), an industry-leading software solution provider delivering website accessibility compliance to businesses of all sizes, today announced the launch of an underwritten registered public offering of shares of its common stock. The Company expects to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of its common stock sold in the proposed offering. All shares of common stock to be sold in the proposed offering will be offered by the Company. The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.  The Company intends to use the net proceeds from this offering for working capital and general corporate purposes.  

B. Riley FBR is acting as the sole bookrunner for the offering.

A shelf registration statement on Form S-3 (File No. 333-237545) relating to the public offering of the shares of common stock described above was filed with the Securities and Exchange Commission (the "SEC") on April 1, 2020 and declared effective by the SEC on April 15, 2020. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the offering were filed with the SEC on August 26, 2020. A final prospectus supplement and accompanying prospectus relating to and describing the terms of the offering will be filed with the SEC and made available on the SEC's web site at www.sec.gov. Copies of the final prospectus supplement and accompanying prospectus relating to the offering may also be obtained, when available, by contacting B. Riley FBR, 11100 Santa Monica Boulevard, Suite 800, Los Angeles, CA 90025, by e-mail at prospectuses@brileyfbr.com.

Before investing, interested parties should read the preliminary prospectus supplement and the accompanying base prospectus in the registration statement and other documents the Company has filed or will file with the SEC for more complete information about the Company and the offering. This press release does not constitute an offer to sell or the solicitation of an offer to buy the common stock, nor will there be any sale of the common stock in any state or other jurisdiction in which such offer, solicitation or sale is not permitted.

About AudioEye, Inc.
AudioEye is a technology company serving businesses committed to providing equal access to their digital content. Through patented technology, subject matter expertise and proprietary processes, AudioEye is transforming how the world experiences digital content. Leading with technology, AudioEye identifies and resolves issues of accessibility and enhances the user experience, making digital content more accessible and more usable for more people.

AudioEye's common stock trades on the Nasdaq Capital Market under the symbol "AEYE." The Company maintains offices in Tucson, Scottsdale, Atlanta, New York and Washington D.C.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements reflect the Company's expectations and projections about its future results, performance, prospects and opportunities. These statements can be identified by the fact that they do not relate strictly to historical or current facts. The Company has tried to identify forward-looking statements by using words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "project," "potential," "should," "will," "will be," "would" and similar expressions, but this is not an exclusive way of identifying such statements. Readers are cautioned that forward-looking statements are not guarantees of future performance. The Company's actual results, performance and achievements may differ materially from those expressed in, or implied by, the forward-looking statements contained herein as a result of various risks, uncertainties and other factors. Important factors that could cause the Company's actual results to differ materially from its expectations include, the variability of the Company's revenues and financial performance; risks associated with product development and technological changes; the impact of COVID-19; the acceptance of the Company's products in the marketplace by existing and potential future customers; competition; general economic conditions; and other factors described under "Risk Factors" in the Company's most recent Annual Report on Form 10-K and in other filings the Company makes with the SEC from time to time. Forward-looking statements speak only as of the date hereof. Except as expressly required under federal securities laws and the rules and regulations of the SEC, the Company does not undertake any obligation to update any forward-looking statements to reflect events or circumstances arising after the date hereof, whether as a result of new information or future events or otherwise. You should not place undue reliance on the forward-looking statements included herein or that may be made elsewhere from time to time by the Company, or on the Company's behalf. All forward-looking statements attributable to the Company are expressly qualified by these cautionary statements.

Investor Contact:
Matt Glover or Tom Colton
AEYE@gatewayir.com

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SOURCE AudioEye, Inc.

FAQ

What is the purpose of AudioEye's public offering on August 26, 2020?

The offering is intended for working capital and general corporate purposes.

How much additional stock can underwriters purchase in AudioEye's offering?

Underwriters can purchase up to an additional 15% of the shares sold.

What is the stock symbol for AudioEye?

AudioEye trades under the stock symbol 'AEYE' on the Nasdaq Capital Market.

What should investors know about the risk of AudioEye's stock offering?

Investors should be aware that the offering may lead to shareholder dilution and is subject to market conditions.

Who is managing AudioEye's public offering?

B. Riley FBR is acting as the sole bookrunner for the offering.