Crexendo Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

Crexendo (NASDAQ:CXDO) announced a registered underwritten public offering of 2,800,000 shares of common stock priced at $5.50 per share, aiming for gross proceeds of approximately $9.6 million. The offering includes 1,050,000 shares sold by stockholders, with an option for underwriters to purchase up to 420,000 additional shares. Proceeds will fund general corporate purposes such as working capital and product development. Closing is expected by September 28, 2020.

Positive

• Expected gross proceeds of approximately $9.6 million to support working capital and product development.
• Potential increase in total proceeds to approximately $11.9 million if underwriters fully exercise their over-allotment option.

Negative

• Dilution of existing shareholder equity due to the sale of common stock.
• Market reaction uncertainty regarding the public offering's impact on share price.

PHOENIX, AZ / ACCESSWIRE / September 24, 2020 / Crexendo, Inc. (NASDAQ:CXDO) ("Crexendo" or the "Company"), an award-winning premier provider of cloud communications, UCaas (Unified Communications as a Service), call center, collaboration services and other cloud based services, today announced the pricing of its registered underwritten public offering of 2,800,000 shares of its common stock, including 1,050,000 shares to be sold by certain stockholders, at a public offering price of $5.50 per share. Crexendo also granted the underwriters a 30-day option to purchase up to 420,000 additional shares of common stock from the Company at the public offering price, less the underwriting discount, to cover over-allotments, if any. The offering is expected to close on or about September 28, 2020, subject to the satisfaction of customary closing conditions.

Total gross proceeds from the offering to the Company, before deducting the underwriting discount and other estimated offering expenses payable by Crexendo, are expected to be approximately $9.6 million, or approximately $11.9 million if the underwriters exercise their over-allotment option in full. The Company plans to use the net proceeds from this offering for general corporate purposes, including working capital, sales and marketing activities, product development, general and administrative matters, and capital expenditures. The Company will not receive any net proceeds from the sale of common stock by the selling stockholders.

B. Riley Securities, Inc. and Colliers Securities LLC are acting as joint book-running managers for the offering. This offering will be made only by means of a prospectus. Copies of the preliminary prospectus and final prospectus, once available, may be obtained from: B. Riley Securities, Inc., 1300 North 17^th Street, Suite 1400, Arlington, VA 22209 Attention: Prospectus Department or Colliers Securities LLC, 90 South Seventh Street, Suite 4300, Minneapolis, MN 55402 Attention: Prospectus Department.

The offering is being made pursuant to a registration statement filed with the Securities and Exchange Commission on Form S-1 (File No. 333-248767) that was declared effective on September 23, 2020. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any offer or 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 such state or jurisdiction.

About Crexendo
Crexendo, Inc. is an award-winning premier provider of UCaaS (Unified Communications as a Service), call center, collaboration services, and other cloud business services that are designed to provide enterprise-class cloud services to any size business at affordable monthly rates.

Safe Harbor Statement
This press release contains forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for such forward-looking statements. The words "believe," "expect," "anticipate," "estimate," "will" and other similar statements of expectation identify forward-looking statements. The forward-looking statements are based on the Company's current expectations and involve risks and uncertainties, including, but not limited to, risks and uncertainties regarding the offering, the intended use of proceeds thereof, other pending transactions, and other future events. The Company cautions that actual results could differ materially from the expectations described in the forward-looking statements. The Company also cautions that undue reliance should not be placed on any of the forward-looking statements, which speak only as of the date of this release. The Company undertakes no responsibility to update any of these forward-looking statements to reflect events or circumstances after the date of this release or to reflect actual outcomes. For a more detailed discussion of risk factors that may affect Crexendo's operations, results and securities, please refer to the Company's filings with the SEC, including the most recently filed Forms 10-Q and 10-K, each of which are incorporated by reference from the Company's registration statement on Form S-1, including the preliminary prospectus, filed with the SEC.

CONTACT:
Crexendo, Inc.
Doug Gaylor
President and Chief Operating Officer
602-732-7990
dgaylor@crexendo.com

SOURCE: Crexendo, Inc.

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https://www.accesswire.com/607614/Crexendo-Announces-Pricing-of-Public-Offering-of-Common-Stock

FAQ

What is the pricing of Crexendo's public offering?

Crexendo's public offering is priced at $5.50 per share.

How many shares will Crexendo be offering?

Crexendo is offering 2,800,000 shares of common stock in this public offering.

What are the expected proceeds from the Crexendo offering?

The expected gross proceeds from the offering are approximately $9.6 million, or about $11.9 million if the over-allotment is fully exercised.

When is the expected closing date for the offering?

The offering is expected to close on or about September 28, 2020.

What will Crexendo use the proceeds for?

Proceeds will be used for general corporate purposes, including working capital, sales and marketing, and product development.