Banzai Announces Pricing of $2.5 Million Public Offering
Banzai International announced a public offering of 13,888,890 shares of common stock and accompanying warrants.
The combined price per share and warrant is set at $0.18, expecting gross proceeds of $2.5 million, before fees and expenses.
The warrants, exercisable immediately, will expire five years from the issuance date.
Proceeds will be used to pay off part of the company's promissory notes and for general corporate purposes.
The offering is projected to close around May 28, 2024, pending customary conditions.
- Public offering to raise $2.5 million in gross proceeds.
- Warrants have a five-year expiration period, potentially extending revenue opportunities.
- Net proceeds will be used to pay down debt, improving financial stability.
- Funds allocated for general corporate purposes, supporting business operations and growth.
- Offering price of $0.18 per share indicates dilution, potentially reducing existing shareholder value.
- Placement agent fees and other offering expenses will reduce net proceeds.
- Short-term debt repayment implies current financial strain.
- Market perception of public offering could negatively impact stock price.
Insights
The public offering of $2.5 million for Banzai International, Inc. is a noteworthy event for investors. This offering involves a substantial issuance of 13,888,890 shares and warrants, which will expand the company's equity base. The combined offering price of $0.18 per share and warrant is relatively low, indicating that the company might be seeking to attract a broad range of investors or may be experiencing financial pressures necessitating quick capital influx.
The use of proceeds is essential here. First, paying off a portion of the currently outstanding promissory notes will reduce the company's debt burden, which is generally positive. However, the trade-off comes with potential dilution for existing shareholders, as the new shares and warrants increase the total number of shares outstanding. The impact on the stock price could be negative in the short term due to this dilution. Finally, the allocation of funds towards general corporate purposes and working capital suggests that the company may be looking to stabilize its operations and invest in its growth areas, which can be a positive sign for the long term.
An important aspect to consider is the warrants, which are exercisable immediately and have a five-year expiration. This can be seen as a way to incentivize investor participation, providing an option to purchase additional shares at the same price if the company performs well in the future. However, it also means future potential dilution if these warrants are exercised.
SEATTLE, May 23, 2024 (GLOBE NEWSWIRE) -- Banzai International, Inc. (NASDAQ: BNZI) (“Banzai” or the “Company”), a leading SaaS marketing technology company, today announced the pricing of its public offering of 13,888,890 shares of common stock (or common stock equivalents in lieu thereof) and warrants to purchase up to 13,888,890 shares of common stock at a combined public offering price of
The closing of the offering is expected to occur on or about May 28, 2024, subject to the satisfaction of customary closing conditions. The Company intends to use the net proceeds from the offering to pay off a portion of the currently outstanding promissory notes, and for general corporate purposes, including working capital, operating expenses and capital expenditures.
A.G.P./Alliance Global Partners is acting as the sole placement agent for the offering.
A registration statement on Form S-1 (File No. 333-278871) relating to the sale of these securities was declared effective by the Securities and Exchange Commission (the “SEC”) on May 21, 2024. This offering is being made only by means of a prospectus. A final prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website at http://www.sec.gov. Electronic copies of the prospectus may be obtained, when available, from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.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 Banzai
Banzai is a marketing technology company that provides essential marketing and sales solutions for businesses of all sizes. On a mission to help their customers achieve their mission, Banzai enables companies of all sizes to target, engage, and measure both new and existing customers more effectively. Banzai customers include Square, Hewlett Packard Enterprise, Thermo Fisher Scientific, Thinkific, Doodle and Active Campaign, among thousands of others.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often use words such as “believe,” “may,” “will,” “estimate,” “target,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “propose,” “plan,” “project,” “forecast,” “predict,” “potential,” “seek,” “future,” “outlook,” and similar variations and expressions. Forward-looking statements are those that do not relate strictly to historical or current facts. Examples of forward-looking statements may include, among others, statements regarding the Company’s: future financial, business and operating performance and goals; annualized recurring revenue and customer retention; ongoing, future or ability to maintain or improve its financial position, cash flows, and liquidity and its expected financial needs; potential financing and ability to obtain financing; acquisition strategy, including the Company’s expectations regarding market conditions and available opportunities, the Company’s ability to execute on such strategy and the expected benefits of such strategy; proposed acquisitions and, if completed, their potential success and financial contributions; strategy and strategic goals, including being able to capitalize on opportunities; the Company’s expectation regarding amendment of the Yorkville Promissory Notes, which is conditioned on repayment of a portion of such notes in connection with this offering; expectations relating to the Company’s industry, outlook and market trends; total addressable market and serviceable addressable market and related projections; plans, strategies and expectations for retaining existing or acquiring new customers, increasing revenue and executing growth initiatives; and product areas of focus and additional products that may be sold in the future.
Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements. Therefore, investors should not rely on any of these forward-looking statements. Factors that may cause actual results to differ materially include the Company’s ability to repay a portion of the Yorkville Promissory Notes, changes in the markets in which the Company operates, customer demand, the financial markets, economic, business and regulatory and other factors, such as the Company’s ability to execute on its strategy, its assumptions regarding available and serviceable markets, its ability to realize some or all of the expected benefits of its acquisition strategy, its ability to effectively integrate the businesses or technologies it acquires, if any, and the expected closing of the offering. More detailed information about risk factors can be found in the Company’s Annual Report on Form 10-K and the Company’s Quarterly Reports on Form 10-Q under the heading “Risk Factors,” and in other reports filed by the Company, including reports on Form 8-K. The Company does not undertake any duty to update forward-looking statements after the date they are made.
Contacts:
Investors
Ralf Esper
Gateway Group
949-574-3860
bnzi@gateway-grp.com29
Media
Tori Klimczak
BLASTmedia
317-806-1900 ext
banzai@blastmedia.com
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