Usio Announces Pricing of $8 Million Underwritten Public Offering
Usio, Inc. (Nasdaq: USIO) announced a public offering of 4,705,883 shares of common stock at $1.70 per share, aiming for gross proceeds of $8 million. The offering is scheduled to close around September 25, 2020, pending customary conditions. Ladenburg Thalmann is the book-running manager, with Barrington Research serving as co-manager. The net proceeds will be utilized for working capital, corporate purposes, and growth investments. The offering is made under an effective shelf registration statement with the SEC.
- The offering is expected to generate $8 million in gross proceeds.
- Funds will be allocated for working capital and growth investments.
- Potential dilution of shares due to the public offering.
- Market reaction may be negative due to increased share supply.
SAN ANTONIO, Sept. 23, 2020 (GLOBE NEWSWIRE) -- Usio, Inc. (Nasdaq: USIO), an integrated electronic payment solutions provider, today announced the pricing of an underwritten public offering of common stock for gross proceeds of
The closing of the offering is expected to take place on or about September 25, 2020, subject to the satisfaction or waiver of customary closing conditions.
Ladenburg Thalmann & Co. Inc. is acting as sole book-running manager in connection with the offering. Barrington Research Associates, Inc. is acting as co-manager in the offering.
A total of 4,705,883 shares of common stock will be issued in the offering. In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 705,882 shares of common stock solely to cover over-allotments, if any, at the public offering price per share, less the underwriting discounts and commissions.
This offering is being made pursuant to an effective shelf registration statement on Form S-3 (File No. 333-221178) previously filed with the Securities and Exchange Commission (“SEC”) and subsequently declared effective on December 6, 2017. The offering is being made only by means of a prospectus and a related prospectus supplement. The preliminary prospectus supplement relating to this offering was filed by Usio with the SEC on September 22, 2020, and a final prospectus supplement relating to this offering will be filed by Usio with the SEC. When available, copies of the final prospectus can be obtained at the SEC’s website at www.sec.gov or from Ladenburg Thalmann & Co. Inc., Prospectus Department, 277 Park Avenue, 26th Floor, New York, New York 10172 or by email at prospectus@ladenburg.com.
Usio intends to use the net proceeds from the offering for working capital and general corporate purposes, including investments in our growth businesses and acquisitions.
This press release does not constitute an offer to sell or a 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 Usio, Inc.
Usio, Inc. (Nasdaq: USIO), a leading integrated payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, and card issuers. The Company operates credit, debit/prepaid, and ACH payment processing platforms to deliver convenient, world-class payment solutions and services to their clients. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the prepaid sector. Usio is headquartered in San Antonio, Texas, and has offices in Austin, Texas, and Franklin, Tennessee, just outside of Nashville. Websites: www.usio.com, www.singularpayments.com, www.payfacinabox.com, and www.akimbocard.com. Find us on Facebook® and Twitter.
FORWARD-LOOKING STATEMENTS DISCLAIMER
Except for the historical information contained herein, the matters discussed in this release include forward-looking statements which are covered by safe harbors. Those statements include, but may not be limited to, all statements regarding the expectation that the closing of the offering will take place on or about September 25, 2020, subject to the satisfaction or waiver of customary closing conditions; and that the securities will be offered pursuant to a registration statement on Form S-3, management's intent, belief and expectations, such as statements concerning our future and our operating and growth strategy. These forward-looking statements are identified by the use of words such as "intend," "continue," "look forward," "anticipate," and "expect" among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the Company's business that could cause actual results to vary, including risks related to the COVID-19 pandemic and its effect on the economy, risks related to the realization of the anticipated opportunities from the prepaid card business, the management of the Company's growth, the loss of key resellers, the relationships with the Automated Clearinghouse network, bank sponsors, third-party card processing providers and merchants, the security of our software, hardware and information, the volatility of the stock price, the need to obtain additional financing, risks associated with new tax legislation, and compliance with complex federal, state and local laws and regulations, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission including its annual report on Form 10-K for the fiscal year ended December 31, 2019. One or more of these factors have affected, and in the future, could affect the Company’s businesses and financial results in the future and could cause actual results to differ materially from plans and projections. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the objectives and plans will be achieved. All forward-looking statements made in this release are based on information presently available to management. The Company assumes no obligation to update any forward-looking statements, except as required by law.
Contact
Joe Hassett, Investor Relations
Gregory FCA
joeh@gregoryfca.com
484-686-6600
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