Qumu Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

Qumu Corporation (NASDAQ: QUMU) has announced the pricing of an underwritten public offering of 3,225,000 shares of common stock at $6.75 per share, aiming for gross proceeds of approximately $21.8 million. The offering includes a 30-day option for the underwriter to purchase an additional 483,750 shares. Closing is anticipated around January 29, 2021, depending on customary conditions. Craig-Hallum Capital Group is the sole managing underwriter. This offering is part of a shelf registration statement with the SEC.

Positive

• Expected gross proceeds of approximately $21.8 million to support business growth.
• Potential for the underwriter to exercise an option for additional shares, indicating market interest.

Negative

• Share dilution risk for existing shareholders due to new shares being offered.

Qumu Corporation (NASDAQ: QUMU), a leading provider of cloud-based enterprise video technology for organizations of all sizes, announced today the pricing of its previously announced underwritten registered public offering of 3,225,000 shares of its common stock at a price to the public of $6.75 per share. In addition, Qumu granted the underwriter a 30-day option to purchase at the public offering price up to 483,750 additional shares of common stock to cover over-allotments, if any. The gross proceeds to Qumu from this offering are expected to be approximately $21.8 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by Qumu, but excluding any exercise of the underwriter’s option to purchase additional shares of common stock. The offering is expected to close on or about January 29, 2021, subject to the satisfaction of customary closing conditions.

Craig-Hallum Capital Group is acting as the sole managing underwriter for the offering.

The securities described above are being offered pursuant to a shelf registration statement on Form S-3 (File No. 333-233470) that was declared effective by the U.S. Securities and Exchange Commission, or the SEC, on September 5, 2019. A registration statement on Form S-3 also relating to the public offering of the shares of common stock described above was filed with the SEC on January 25, 2021 pursuant to Rule 462(b) and is effective upon filing. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the proposed offering were filed with the SEC on January 25, 2021. The final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and, when available, may be obtained by visiting the SEC’s website at www.sec.gov or by contacting Craig-Hallum Capital Group LLC, 222 South Ninth Street, Suite 350, Minneapolis, MN 55402, by telephone at 612-334-6300 or by email at prospectus@chlm.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 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 Qumu

Qumu Corporation (Nasdaq: QUMU) is a leading provider of best-in-class tools to create, manage, secure, distribute and measure the success of live and on-demand video for the enterprise. Backed by the most trusted and experienced team in the industry, the Qumu platform enables global organizations to drive employee engagement, increase access to video, and modernize the workplace by providing a more efficient and effective way to share knowledge.

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. These include statements regarding, but not limited to, the expected closing date of the offering and the expected uses of the proceeds from the offering. Forward-looking statements can be identified by the use of words such as “may,” “will,” “plan,” “should,” “expect,” “anticipate,” “estimate,” “continue” or comparable terminology. Forward-looking statements involve risks and uncertainties that could cause actual results or developments to differ materially from those indicated due to a number of factors affecting Qumu’s operations, markets, products and services. Qumu identifies the principal risks and uncertainties that impact its performance in its public reports filed with the SEC, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition” sections of Qumu’s most recent Annual Report on Form 10-K, as may be supplemented or amended by Qumu’s subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made and Qumu assumes no obligation to update any forward-looking statements.

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FAQ

What is the purpose of Qumu's recent stock offering?

The offering aims to raise approximately $21.8 million to support Qumu's business growth.

When is the expected closing date for Qumu's stock offering?

The offering is expected to close on or about January 29, 2021, subject to customary closing conditions.

How many shares are being offered in Qumu's public offering?

Qumu is offering 3,225,000 shares of its common stock.

What is the price per share for Qumu's stock offering?

The shares are being offered at a price of $6.75 per share.

Who is managing Qumu's stock offering?

Craig-Hallum Capital Group is acting as the sole managing underwriter for the offering.