SRAX Raises $13 Million to Fund Rapid Growth of Sequire
June 25 2020 - 7:05AM
Business Wire
SRAX, Inc. (NASDAQ: SRAX), a digital marketing and consumer data
management technology company, announced it entered into definitive
securities purchase agreements led by existing institutional
investors for the purchase and sale of an aggregate of $13 million
senior secured convertible debentures at an above market fixed
conversion price of $2.69. The Company intends to use the proceeds
to fund the rapid expansion of its investor intelligence, data
analytics, and communications platform, Sequire.
The Company sold $14,772,727 million principal amount Original
Issue Discount Secured Convertible Debentures (“Debentures”) and
common stock purchase warrants representing the right to acquire up
to 6,295,435 shares of Class A common stock (“Warrants”) in a
transaction exempt from registration under the Securities Act of
1933, as amended. The Debentures are secured by a first priority
security interest in substantially all of the Company’s assets. The
Debentures and Warrants are convertible and exercisable,
respectively at $2.69 and $2.50 per share. The Company has agreed
to file a registration statement within forty-five days for the
common stock underlying the Debentures and Warrants.
The Company estimates net proceeds from the offering to be
$11,800,000 million after giving effect to the Original Issue
Discount and deducting placement agent fees, legal fees, and other
estimated offering expenses. Beginning after the twelve month
anniversary, the Debentures will bear interest at a rate of 12% per
year, payable quarterly. The Debentures will mature on December 29,
2021, subject to 3 consecutive six-month extensions at the holder’s
sole discretion, unless earlier redeemed or converted.
SRAX expects to use the net proceeds to pay off a $2.5 million
outstanding secured term loan, fund the rapid growth of Sequire,
continue to grow the BIGtoken platform, satisfy other current
obligations, and for working capital.
The Special Equities Group, LLC, a division of Bradley Woods
& Co. Ltd., acted as placement agent for this offering.
Silvestre Law Group, P.C. acted as legal counsel to SRAX.
This news 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.
Additional details about the transaction will be available in
the Company’s Form 8-K to be filed with the Securities and Exchange
Commission, which will be available on the Company’s website and
at: www.sec.gov.
About SRAX
SRAX (NASDAQ: SRAX) is a digital marketing and consumer data
management technology company. SRAX’s technology unlocks data for
brands in the CPG, investor relations, luxury, and lifestyle
verticals. Through its various platforms, SRAX is monetizing its
data sets and growing multiple recurring revenue streams. BIGtoken
is a consumer-managed data marketplace where people can own and
earn from their data. The platform also provides advertisers and
media companies access to transparent, verified consumer data to
better reach and serve audiences. Sequire is a premier platform for
investor intelligence and communication. Through Sequire, public
companies can track their investors’ behaviors and trends and use
those insights to engage current and potential investors across
marketing channels. For more information on SRAX and its verticals,
visit srax.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200625005284/en/
Natalie Santos SRAX press@srax.com
SRAX (NASDAQ:SRAX)
Historical Stock Chart
From Mar 2024 to Apr 2024
SRAX (NASDAQ:SRAX)
Historical Stock Chart
From Apr 2023 to Apr 2024