Backblaze Announces Full Exercise of Over-Allotment Option

Rhea-AI Summary

Backblaze (BLZE) announced that underwriters of its recent upsized public offering have fully exercised their over-allotment option to purchase an additional 937,500 shares of Class A common stock at $5.60 per share. The exercise closed on November 25, 2024, bringing the total net proceeds to $37.5 million after deducting underwriting discounts and commissions. The offering was managed by Oppenheimer & Co. Inc. and Needham & Company as joint book-running managers, with Craig-Hallum Capital Group as co-manager.

Positive

• Raised $37.5 million in net proceeds from the offering
• Full exercise of over-allotment option indicates strong demand for shares

Negative

• Share dilution for existing stockholders due to additional share issuance

Insights

Financial Analyst

The successful exercise of the over-allotment option demonstrates strong market demand for BLZE shares and brings significant additional capital to the company. The total net proceeds of $37.5 million from the offering, including the over-allotment, substantially strengthens Backblaze's balance sheet. At a share price of $5.60, the additional 937,500 shares represent approximately 11% dilution but provide important growth capital.

For a company with a market cap of $292.6 million, this capital raise is meaningful and could accelerate their competitive positioning against larger cloud storage providers. The strong institutional backing from reputable underwriters Oppenheimer and Needham adds credibility to the offering. However, investors should monitor how efficiently management deploys this capital to drive growth and path to profitability.

SAN MATEO, Calif.--(BUSINESS WIRE)-- Backblaze, Inc. (Nasdaq: BLZE), the cloud storage innovator providing a modern alternative to traditional cloud providers, today announced the underwriters of its recently completed upsized public offering of shares of its Class A common stock (the “Common Stock”), which closed on November 22, 2024, have exercised in full their option to purchase an additional 937,500 shares of Common Stock. The additional shares of Common Stock were sold at a price to the public of $5.60, before underwriting discounts. The exercise of the underwriters’ option to purchase additional shares of Common Stock closed on November 25, 2024 and brings the total net proceeds to Backblaze to $37.5 million, after deducting underwriting discounts and commissions.

Oppenheimer & Co. Inc. and Needham & Company, LLC acted as joint book-running managers and Craig-Hallum Capital Group LLC acted as co-manager for the offering.

The offering was made pursuant to an effective shelf registration statement on Form S-3 that was filed with the U.S. Securities and Exchange Commission (the “SEC”) on May 1, 2024 and declared effective by the SEC on May 13, 2024. A prospectus supplement and accompanying prospectus relating to and describing the terms of the proposed offering were filed with the SEC. When available, copies of the prospectus supplement relating to the offering may be obtained by contacting: Oppenheimer & Co. Inc., Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, New York 10004, by telephone at (212) 667-8055, or by email at EquityProspectus@opco.com; or from Needham & Company, LLC, Attention: Prospectus Department, 250 Park Avenue, 10th Floor, New York, NY 10177, telephone: (800) 903-3268, or by emailing prospectus@needhamco.com.

This press release shall 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 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 jurisdiction.

About Backblaze, Inc.

Backblaze is the cloud storage innovator providing a modern alternative to traditional cloud providers. We deliver high-performance, secure cloud object storage that customers use to develop applications, manage media, secure backups, build AI workflows, protect from ransomware, and more. Backblaze helps businesses break free from the walled gardens that traditional providers lock customers into, enabling them to use their data in open cloud workflows with the providers they prefer at a fraction of the cost. Headquartered in San Mateo, CA, Backblaze (NASDAQ: BLZE) was founded in 2007 and serves over 500,000 customers in 175 countries around the world. For more information, please go to www.backblaze.com.

Forward-looking Statements

Except for historical information, certain statements in this press release, including statements regarding the proposed follow-on public offering and the proposed terms of such offering are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations or financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties, and other important factors that are in some cases beyond our control and may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements and relate to market conditions, the ability to complete the offering, and the satisfaction of the closing conditions related to the follow-on public offering. The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. Backblaze undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled “Risk Factors” section in Backblaze’s effective shelf registration statement on Form S-3 initially filed with the SEC on May 1, 2024, including the documents incorporated by reference therein, including Backblaze’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on April 1, 2024 and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, filed with the SEC on November 7, 2024.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241125788867/en/

Investors Contact:

Mimi Kong

Investor Relations

ir@backblaze.com

Source: Backblaze, Inc.

FAQ

How much did Backblaze (BLZE) raise in their recent public offering?

Backblaze raised $37.5 million in net proceeds after the full exercise of the over-allotment option and underwriting discounts and commissions.

What was the price per share for Backblaze's (BLZE) additional share offering in November 2024?

The additional shares were sold at a public price of $5.60 per share.

How many additional shares did Backblaze (BLZE) sell through the over-allotment option?

Backblaze sold an additional 937,500 shares through the full exercise of the over-allotment option.