SeaChange International Closes $19.1 Million Underwritten Public Offering of Common Stock Price Above-The-Market
April 01 2021 - 4:05PM
SeaChange International, Inc. ("SeaChange" or the
"Company") (NASDAQ: SEAC), a leading provider of
video delivery platforms, today announced the closing of an
underwritten public offering of 10,323,484 shares of common stock
of the Company for total gross proceeds to the Company of
approximately $19.1 million. The offering was priced at $1.85 per
share, which was above the five-day average closing price of $1.26.
In addition, the Company has granted the underwriter an option to
purchase an additional 15 percent of the common stock offered in
the public offering solely to cover over-allotments, if any,
exercisable for 45 days after the closing of this offering, which
if exercised, would bring total gross proceeds to approximately
$22.0 million. The Company intends to use the net proceeds from
this offering for general corporate purposes, including, but not
limited to, working capital, potential acquisitions, and other
business opportunities.
“The proceeds from the offering will allow us to accelerate
several key initiatives within our strategic roadmap, which is
designed to drive scale, capture market share, and create even
greater value for both our customers and shareholders,” said
Executive Chairman Robert Pons. “With more than $20 million of cash
on our balance sheet, we now have the resources to better
capitalize on the significant growth in and demand for over-the-top
(OTT) streaming services globally.”
Aegis Capital Corp. acted as the sole book-running manager for
the offering.
This offering was made pursuant to an effective shelf
registration statement on Form S-3 (No. 333-252777) previously
filed with the U.S. Securities and Exchange Commission (the “SEC”)
and declared effective by the SEC on March 16, 2021. A final
prospectus supplement and accompanying prospectus describing the
terms of the proposed offering have been filed with the SEC and
will be available on the SEC’s website located
at http://www.sec.gov. Electronic copies of the final
prospectus supplement and the accompanying prospectus may be
obtained by contacting Aegis Capital Corp., Attention: Syndicate
Department, 810 7th Avenue, 18th floor, New York, NY 10019, by
email at syndicate@aegiscap.com, or by telephone at (212)
813-1010. Before investing in this offering, interested parties
should read in their entirety the prospectus supplement and the
accompanying prospectus and the other documents that the Company
has filed with the SEC that are incorporated by reference in such
prospectus supplement and the accompanying prospectus, which
provide more information about the Company and such offering.
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 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 SeaChange International, Inc.SeaChange
International (NASDAQ: SEAC) powers hundreds of cloud and
on-premises platforms with live TV and video on demand (VOD) for
millions of end users worldwide. SeaChange's end-to-end solution
enables operators and content owners to cost-effectively launch a
direct-to-consumer video streaming service to manage, curate and
monetize their linear and on demand content across all major device
platforms such as Smart-TVs, mobile devices, and Set-Top-Boxes. A
demonstration of SeaChange’s video streaming platform is
available here. For more information on SeaChange, please
visit www.seachange.com.
Safe Harbor DisclosureThis press release
contains forward-looking statements that are made pursuant to the
safe harbor provisions 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. Such forward-looking
statements include, but are not limited to, statements related to
the Company's intended use of proceeds and other statements that
are not historical facts. Forward-looking statements are based on
management's current expectations and are subject to risks and
uncertainties that may cause actual results or events to differ
materially from those projected. These risks and uncertainties,
many of which are beyond our control, include: the risk that the
public offering of common stock may not close; the effects of the
COVID-19 pandemic on our operations and general economic
conditions; the expected growth of the OTT market; the outcome of
the Company’s active discussions with approximately 50 content
owners; the Company’s aggregate potential revenue over the next
three years as a result of its contract win with one of the largest
mobile network providers; the aggregate total contract value to be
realized from the Company’s wins for its Framework platform; the
Company’s position to enable the industry’s ongoing
direct-to-consumer movement; the Company’s expectation that over
the next five years, thousands of direct-to-consumer TV apps will
be launched with a need for a built-in ad monetization strategy and
the role the Company’s Video Apps platform could play in powering
and capitalizing on the direct-to-consumer TV apps revolution; the
Company’s ability to execute its growth strategy, in light of its
liquidity position, resources and recently implemented
cost-reduction measures, as well as other risks described in the
section entitled "Risk Factors" and elsewhere in our Annual Report
on Form 10-K filed with the SEC on April 20, 2020 and in our other
filings with the SEC, including, without limitation, our reports on
Forms 8-K and 10-Q, all of which can be obtained on the SEC website
at www.sec.gov. Readers are cautioned not to place undue reliance
on the forward-looking statements, which speak only as of the date
on which they are made and reflect management's current estimates,
projections, expectations and beliefs. We expressly disclaim any
obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in our expectations or any changes in events,
conditions or circumstances on which any such statement is based,
except as required by law.
SeaChange Contact:Matt GloverGateway Investor
Relations949-574-3860SEAC@gatewayir.com
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