red violet Raises $7.5 Million to Meet Demand and Accelerate Growth
August 29 2019 - 9:15AM
Business Wire
Funding to fuel sales, product development,
and marketing as additional capital unleashes growth
opportunities
Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and
information solutions provider, today announced the closing of $7.5
million in growth financing from existing and new investors through
the sale of 681,000 shares of common stock in a registered direct
offering. The funding underscores the faith in red violet, its team
and its current strong growth trajectory. The Company intends to
use the proceeds to accelerate market expansion through new
investment in sales, product development and marketing, as well as
for working capital and other general corporate purposes. The
Company has no intention of accessing any additional funds under
the Company’s registration statement.
“While we had sufficient capital on our balance sheet to achieve
positive free cash flow, we are pleased to announce that we have
raised the requisite growth capital to accelerate our business. As
evidenced in our recent quarterly results, we have tremendous
demand for our products and are constrained in resources to not
only meet demand but to avail ourselves of the various other
strategic opportunities before us,” commented Derek Dubner, red
violet’s CEO. “Investment in specific areas of the Company will
accommodate increasing demand in the near term and will lay the
foundation for the acceleration of our business, including
investment in sales, our technology team, and marketing personnel.
While we have grown revenues approximately 80% in the first half of
2019 and expect that growth to continue throughout the remainder of
the year, we believe that deploying this capital will position us
to accelerate our growth rate in 2020 to greater than 100%.
Notwithstanding the deployment of this growth capital, we expect to
achieve positive free cash flow in the first quarter of 2020.”
The Company also announced its intention to institute regular
quarterly conference calls commencing third quarter of 2019.
About red violet®
At red violet, we believe that time is your most valuable asset.
Through powerful analytics, we transform data into intelligence, in
a fast and efficient manner, so that our clients can spend their
time on what matters most - running their organizations with
confidence. Through leading-edge, proprietary technology and a
massive data repository, our analytics and information solutions
harness the power of data fusion, uncovering the relevance of
disparate data points and converting them into comprehensive and
insightful views of people, businesses, assets and their
interrelationships. We empower clients across markets and
industries to better execute all aspects of their business, from
managing risk, recovering debt, identifying fraud and abuse, and
ensuring legislative compliance, to identifying and acquiring
customers. At red violet, we are dedicated to making the world a
safer place and reducing the cost of doing business. For more
information, please visit www.redviolet.com.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements," as
that term is defined under the Private Securities Litigation Reform
Act of 1995 (PSLRA), which statements may be identified by words
such as "expects," "plans," "projects," "will," "may,"
"anticipate," "believes," "should," "intends," "estimates," and
other words of similar meaning. Such forward looking statements are
subject to risks and uncertainties that are often difficult to
predict, are beyond our control and which may cause results to
differ materially from expectations, including whether we will use
the net proceeds from the sale of the shares to accelerate market
expansion through new investment in sales, product development, and
marketing, as well as working capital and other general corporate
purposes, whether investment in specific areas of the Company will
accommodate increasing demand in the near term and lay the
foundation for the acceleration of the Company’s business, whether
the revenue growth rate will continue in similar amounts for the
remainder of 2019 and whether deploying this capital will position
the Company to accelerate its growth rate in 2020 to greater than
100%. Readers are cautioned not to place undue reliance on these
forward-looking statements, which are based on our expectations as
of the date of this press release and speak only as of the date of
this press release and are advised to consider the factors listed
above together with the additional factors under the heading
"Forward-Looking Statements" and "Risk Factors" in red violet's
Form 10-K for the year ended December 31, 2018 filed on March 7,
2019, as may be supplemented or amended by the Company's other SEC
filings. We undertake no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20190829005434/en/
Investor Relations Contact: Camilo Ramirez Red Violet,
Inc. 561-757-4500 ir@redviolet.com
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