AudioEye Announces Pricing of Secondary Offering of Common Stock by Selling Stockholders

Rhea-AI Summary

AudioEye (Nasdaq: AEYE) has announced the pricing of a secondary offering of up to 1,250,000 shares of common stock by selling stockholders at $24.00 per share. The offering, expected to close on December 6, 2024, includes a 30-day option for underwriters to purchase an additional 187,500 shares. Needham & Company is acting as Sole Book-Runner, and Roth Capital Partners as Lead Manager.

The company will not receive any proceeds from the offering, as all net proceeds will go to the selling stockholders. The offering is being made through a shelf registration statement on Form S-3 filed with the SEC.

Positive

• None.

Negative

• Company receives no proceeds from the offering
• Potential dilution of existing shareholders' ownership with up to 1,437,500 new shares (including overallotment option)

Insights

Financial Analyst

This secondary offering represents a significant market event for AudioEye, with selling stockholders offering up to 1,250,000 shares at $24.00 per share. The total potential value of the offering, including the additional 187,500 shares option, could reach approximately $34.5 million. The pricing indicates strong market interest, but it's important to note that AudioEye won't receive any proceeds as this is a secondary offering from existing shareholders.

The involvement of reputable underwriters like Needham & Company and Roth Capital Partners adds credibility to the offering. However, this large share sale could create temporary downward pressure on the stock price due to increased supply. The timing and size of the offering suggest confidence from the selling stockholders in the current market valuation, though their decision to exit partially might raise questions about their long-term outlook.

TUCSON, Ariz., Dec. 5, 2024 /PRNewswire/ -- AudioEye, Inc. ("AudioEye" or the "Company") (Nasdaq: AEYE), the industry-leading digital accessibility company, today announced the pricing of the previously announced underwritten secondary offering of up to 1,250,000 shares of its common stock to be sold by certain selling stockholders at a price to the public of $24.00 per share, before underwriting discounts and commissions. The offering is expected to close on December 6, 2024, subject to customary closing conditions. The underwriters have a 30-day option to purchase up to an additional 187,500 shares of the Company's common stock from the selling stockholders at the public offering price, less underwriting discounts and commissions.

Needham & Company is acting as Sole Book-Runner, and Roth Capital Partners is acting as Lead Manager for the offering.

The selling stockholders will receive all of the net proceeds from the proposed offering. The Company will not sell any shares of its common stock in the proposed offering and will not receive any proceeds from the sale of shares of the Company's stock in the offering.

This offering is being made pursuant to a shelf registration statement on Form S-3 (File No. 333-276937) filed with the Securities and Exchange Commission (the "SEC") and declared effective on February 13, 2024. The offering of the shares of common stock is being made by means of a prospectus, including a prospectus supplement, forming a part of the registration statement. A preliminary prospectus supplement and the accompanying prospectus relating to and describing the terms of the offering has been filed with the SEC and is available on the SEC's website at http://www.sec.gov. A final prospectus supplement and the accompanying prospectus relating to the offering will be filed with the SEC. Copies of the prospectus supplement and the accompanying prospectus relating to this offering can be obtained, when available, by contacting: Needham & Company, LLC, 250 Park Avenue, 10th Floor, New York, NY 10177, Attn: Prospectus Department, by telephone at (800) 903-3268 or by e-mail at prospectus@needhamco.com, with a copy to Roth Capital Partners, LLC, 888 San Clemente, Suite 400, Newport Beach, CA 92660, Attn:  Equity Capital Markets, by telephone at (800) 678-9147 or by e-mail at rothecm@roth.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About AudioEye
AudioEye exists to ensure the digital future we build is inclusive. By combining the latest AI automation technology with guidance from certified experts and direct input from the disability community, AudioEye helps ensure businesses of all sizes — including over 126,000 customers like Samsung, Calvin Klein, and Samsonite — are accessible and usable. Holding 23 US patents, AudioEye helps companies solve every aspect of digital accessibility with flexible approaches that best meet their needs. The comprehensive solution includes 24/7 accessibility monitoring, automated accessibility fixes, expert testing, developer tools, and industry-leading legal protection.

Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Words such as "anticipates," "believes," "expects," "intends," "plans," "potential," "projects," "would," and "future," or similar expressions, are intended to identify forward-looking statements. These forward-looking statements reflect AudioEye's current beliefs and expectations and involve risks and uncertainties that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements. Forward-looking statements contained in this press release include, but are not limited to statements relating to the offering and expected closing date. Each of these forward-looking statements involves substantial risks and uncertainties that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements, including, without limitation, risks and uncertainties related to: the uncertain market acceptance of our existing and future products; our need for, and the availability of, additional capital in the future to fund our operations and the development of new products; the success, timing and financial consequences of new strategic relationships or licensing agreements we may enter into; rapid changes in Internet-based applications that may affect the utility and commercial viability of our products; the timing and magnitude of expenditures we may incur in connection with our ongoing product development activities; judicial applications of accessibility laws to the internet; the level of competition from our existing competitors and from new competitors in our marketplace; and the regulatory environment for our products and services. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Investor Contact
Tom Colton
Gateway Group, Inc.
AEYE@gateway-grp.com
949-574-3860

 

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SOURCE AudioEye, Inc.

FAQ

What is the price per share for AudioEye's (AEYE) secondary offering in December 2024?

AudioEye's secondary offering is priced at $24.00 per share.

How many shares are being offered in AudioEye's (AEYE) December 2024 secondary offering?

The offering includes up to 1,250,000 shares, with an additional 30-day option for underwriters to purchase up to 187,500 shares.

Will AudioEye (AEYE) receive any proceeds from the December 2024 secondary offering?

No, AudioEye will not receive any proceeds from the offering. All net proceeds will go to the selling stockholders.

When is AudioEye's (AEYE) secondary offering expected to close?

The offering is expected to close on December 6, 2024, subject to customary closing conditions.