NEW YORK, Sept. 20, 2019 /PRNewswire/ -- Pareteum
Corporation (Nasdaq: TEUM), the rapidly growing cloud
communications platform company, today announced the pricing of a
$40 million registered direct public
offering led by 2 Institutional Investors and Hoving &
Partners.
The offering consists of (i) 18,852,273 Common Stock Units,
consisting of one share of Pareteum's common stock together with
one Series A Purchase Warrant to purchase one share of Pareteum's
common stock and one Series B Purchase Warrant to purchase one-half
share of Pareteum's common stock and (ii) 3,875,000 Pre-Funded
Units, consisting of one pre-funded warrant to purchase one share
of Pareteum's common stock together with one Series A Purchase
Warrant to purchase one share of the Pareteum's common stock and
one Series B Purchase Warrant to purchase one-half share of
Pareteum's common stock. The shares of common stock and
accompanying purchase warrants were sold together at a combined
public offering price of $1.76 per
unit, and the pre-funded warrants and accompanying purchase
warrants were sold at a public offering price of $1.75 per unit with an exercise price of
$0.01 per unit. The pre-funded
warrants are immediately exercisable and may be exercised at any
time until all of the pre-funded warrants are exercised in full.
The Series A Purchase Warrants are exercisable six months after
issuance, have an exercise price of $2.25 per share, and are exercisable for 5 years.
The Series B Purchase Warrants are exercisable six months after
issuance, have an exercise price of $1.84 per share, and are exercisable for eighteen
months.
Dawson James Securities, Inc. acted as placement agent for the
offering.
The gross proceeds to the Company from the offering, before
deducting the placement agent and other estimated fees and
expenses, are approximately $40
million.
Pareteum intends to use approximately $30
million of the net proceeds to eliminate certain outstanding
indebtedness. The balance will be used for working capital and
general corporate purposes.
The shares described above were offered by Pareteum pursuant to
a registration statement on Form S-3 previously filed with, and
subsequently declared effective by the U.S. Securities and Exchange
Commission ("SEC") on December 18,
2018. A final prospectus supplement relating to the offering
will be filed with the SEC and is available, along with the
accompanying base prospectus, on the SEC's website at
http://www.sec.gov, or by contacting Dawson
James: 1 N. Federal Hwy; Suite 500, Boca Raton, FL 33432 ATTN: Prospectus
Department.
About Pareteum Corporation:
Millions of people and devices are connected around the world
using Pareteum's Global Cloud Communications Platform, enhancing
their mobile experience. Pareteum unleashes the power of
applications and mobile services, bringing secure, ubiquitous,
scalable, and seamlessly available voice, video, SMS/text
messaging, and data, media and content enablement to our customers,
making worldwide communications services easily and economically
accessible to everyone. By harnessing the value of our cloud
communications platform, Pareteum serves enterprises,
communications service providers, early stage innovators,
developers, IoT, and telecommunications infrastructure providers.
Pareteum envisions a new mobile communications experience imagining
what will be, and delivering now. Pareteum currently has offices in
North America, South America, Spain, Bahrain, Singapore, India, Indonesia, Germany, Belgium, United
Kingdom, Russia, and
the Netherlands. For more
information please visit: www.pareteum.com.
Forward Looking Statements:
Certain statements contained herein constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements may include, without
limitation, statements with respect to Pareteum's plans and
objectives, projections, expectations and intentions. These
forward-looking statements are based on current expectations,
estimates and projections about Pareteum's industry, management's
beliefs and certain assumptions made by management. Readers are
cautioned that any such forward-looking statements are not
guarantees of future performance and are subject to certain risks,
uncertainties and assumptions that are difficult to predict.
Because such statements involve risks and uncertainties, the actual
results and performance of Pareteum may differ materially from the
results expressed or implied by such forward-looking statements.
Given these uncertainties, readers are cautioned not to place undue
reliance on such forward-looking statements. Unless otherwise
required by law, Pareteum also disclaims any obligation to update
its view of any such risks or uncertainties or to announce publicly
the result of any revisions to the forward-looking statements made
here. Additional information concerning certain risks and
uncertainties that could cause actual results to differ materially
from those projected or suggested in Pareteum's filings with the
Securities and Exchange Commission, copies of which are available
from the SEC or may be obtained upon request from Pareteum
Corporation.
Media Inquiries:
Press@pareteum.com
Pareteum Investor Relations Contacts:
Laura Thomas
laura.thomas@pareteum.com
Allise Furlani
The Blueshirt Group
allise@blueshirtgroup.com
Carrie Howes
Rayleigh Capital
European-Global IR
+1 650 232 4238
carrie.howes@pareteum.com
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SOURCE Pareteum Corporation