As
filed pursuant to Rule 424(b)(5)
Registration No. 333-264038
PROSPECTUS
SUPPLEMENT
(to Prospectus dated April 14, 2022)

36,051,000
Shares
of Common Stock
Verb
Technology Company, Inc. is offering 36,051,000 shares of its
common stock pursuant to this prospectus supplement and the
accompanying prospectus. Each share of common stock is being sold
at a price of $0.20.
Our
common stock is quoted on the Nasdaq Capital Market under the
symbol “VERB.” On January 23, 2023, the last reported sale price of
our common stock on the Nasdaq Capital Market was $0.2287 per
share.
You
should read this prospectus supplement and the accompanying
prospectus and the documents incorporated by reference in this
prospectus supplement carefully before you invest.
INVESTING
IN OUR SECURITIES INVOLVES SIGNIFICANT RISKS. YOU SHOULD REVIEW
CAREFULLY THE “RISK FACTORS” BEGINNING ON PAGE S-7 OF THIS
PROSPECTUS SUPPLEMENT AND IN THE DOCUMENTS INCORPORATED BY
REFERENCE INTO THIS PROSPECTUS SUPPLEMENT.
Neither
the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or
passed upon the adequacy or accuracy of this prospectus supplement.
Any representation to the contrary is a criminal
offense.
|
|
Per
Share |
|
|
Total |
|
Public offering price |
|
$ |
0.20 |
|
|
$ |
7,210,200 |
|
Underwriting
discounts(1) |
|
$ |
0.012 |
|
|
$ |
432,612 |
|
Proceeds
to us, before expenses(2) |
|
$ |
0.188 |
|
|
$ |
6,777,588 |
|
(1) |
See
“Underwriting” beginning on page S-11 of this prospectus supplement
for additional information regarding total underwriting
compensation. For example, we have agreed to reimburse the
underwriter for certain expenses. |
(2) |
The
above summary of offering proceeds does not give effect to any
proceeds from the exercise of the pre-funded warrants being issued
in this offering. |
Delivery
of the shares of common stock will be made through the book-entry
facilities of The Depository Trust Company and is expected to be
made on or about January 26, 2023, subject to customary closing
conditions.
Sole Book-Running Manager
Aegis
Capital Corp.
The
date of this prospectus supplement is January 24,
2023
TABLE
OF CONTENTS
Prospectus
Supplement
Prospectus
ABOUT
THIS PROSPECTUS SUPPLEMENT
This
prospectus supplement and accompanying prospectus relates to the
offering of our common stock. Before buying any of the securities
that we are offering, we urge you to carefully read this prospectus
supplement, the accompanying prospectus, any free writing
prospectus that we have authorized for use in connection with this
offering, and the information incorporated by reference as
described under the headings “Where You Can Find More Information”
and “Information Incorporated by Reference” in this prospectus
supplement. These documents contain important information that you
should consider when making your investment decision.
This
document is comprised of two parts. The first part is this
prospectus supplement, which describes the specific terms of this
offering and also adds to, and updates information contained in,
the accompanying prospectus and the documents incorporated by
reference into this prospectus supplement and the accompanying
prospectus. The second part, the accompanying prospectus, including
the documents incorporated by reference into the accompanying
prospectus, provides more general information, some of which may
not apply to this offering. Generally, when we refer to this
prospectus, we are referring to the combined document consisting of
this prospectus supplement and the accompanying prospectus. In this
prospectus supplement, as permitted by law, we “incorporate by
reference” information from other documents that we file with the
Securities and Exchange Commission, or the SEC. This means that we
can disclose important information to you by referring to those
documents. The information incorporated by reference is considered
to be a part of this prospectus supplement and the accompanying
prospectus and should be read with the same care. When we make
future filings with the SEC to update the information contained in
documents that have been incorporated by reference, the information
included or incorporated by reference in this prospectus supplement
is considered to be automatically updated and superseded. In other
words, in case of a conflict or inconsistency between information
contained in this prospectus supplement and information in the
accompanying prospectus or incorporated by reference into this
prospectus supplement, you should rely on the information contained
in the document that was filed later.
This
prospectus supplement and the accompanying prospectus are part of a
registration statement on Form S-3 that we filed on March 31, 2022
with the SEC using a “shelf” registration process with respect to
up to $100,000,000 in securities that may be sold thereunder. The
shelf registration statement was declared effective by the SEC on
April 14, 2022.
Under
the shelf registration process, we may offer and sell any
combination of securities described in the accompanying prospectus
in one or more offerings. The purpose of this prospectus supplement
is to provide supplemental information regarding us in connection
with this offering of common stock.
You
should rely only on the information contained in, or incorporated
by reference into, this prospectus supplement, the accompanying
prospectus, and in any free writing prospectus that we have
authorized for use in connection with this offering. We have not
authorized any other person to provide you with different
information. We are not making an offer to sell or soliciting an
offer to buy our securities in any jurisdiction in which an offer
or solicitation is not authorized or in which the person making
that offer or solicitation is not qualified to do so or to anyone
to whom it is unlawful to make an offer or solicitation. You should
assume that the information appearing in this prospectus
supplement, the accompanying prospectus, the documents incorporated
by reference into this prospectus supplement and the accompanying
prospectus, and in any free writing prospectus that we have
authorized for use in connection with this offering, is accurate
only as of the date of those respective documents. Our business,
financial condition, results of operations, and prospects may have
changed since those dates.
PROSPECTUS
SUPPLEMENT SUMMARY
This
summary description about us and our business highlights selected
information contained elsewhere in this prospectus supplement or
the accompanying prospectus, or incorporated in this prospectus
supplement or the accompanying prospectus by reference. This
summary does not contain all of the information you should consider
before buying securities in this offering. You should carefully
read this entire prospectus supplement and the accompanying
prospectus, including each of the documents incorporated herein or
therein by reference, before making an investment
decision.
Unless
the context otherwise requires, the terms “Verb,” “the Company,”
“we,” “us” and “our” in this prospectus supplement and accompanying
prospectus refer to Verb Technology Company, Inc.
Our
Business
Overview
We
are a Software-as-a-Service (“SaaS”) applications platform
developer. Our platform is comprised of a suite of interactive
video-based sales enablement business software products marketed on
a subscription basis. Our applications, available in both mobile
and desktop versions, are offered as a fully integrated suite, as
well as on a standalone basis, and include verbCRM, our Customer
Relationship Management (“CRM”) application, verbLEARN, our
Learning Management System application, verbLIVE, our Live Stream
eCommerce application, verbPULSE, our business/augmented
intelligence notification and sales coach application, and
verbTEAMS, our self-onboarding video-based CRM and content
management application for professional sports teams, small
business and solopreneurs, with seamless synchronization with
Salesforce, that also comes bundled with verbLIVE, and verbMAIL,
our interactive video-based sales communication tool integrated
into Microsoft Outlook. MARKET.live is our multi-vendor,
multi-presenter, livestream social shopping platform, that combines
ecommerce and entertainment.
Our Technology
Our
suite of applications can be distinguished from other sales
enablement applications because our applications utilize our
proprietary interactive video technology as the primary means of
communication between sales and marketing professionals and their
customers and prospects. Moreover, the proprietary data collection
and analytics capabilities of our applications inform our users on
their devices in real time, when and for how long their prospects
have watched a video, how many times such prospects watched it, and
what they clicked on, which allows our users to focus their time
and efforts on ‘hot leads’ or interested prospects rather than on
those that have not seen such video or otherwise expressed interest
in such content. Users can create their hot lead lists by using
familiar, intuitive ‘swipe left/swipe right’ on-screen navigation.
Our clients report that these capabilities provide for a much more
efficient and effective sales process, resulting in increased sales
conversion rates. We developed the proprietary patent-pending
interactive video technology, as well as several other
patent-issued and patent-pending technologies that serve as the
unique foundation for all our platform applications.
Our Products
verbCRM
combines the capabilities of CRM lead-generation, content
management, and in-video ecommerce capabilities in an intuitive,
yet powerful tool for both inexperienced as well as highly skilled
sales professionals. verbCRM allows users to quickly and easily
create, distribute, and post videos to which they can add a choice
of on-screen clickable icons which, when clicked, allow viewers to
respond to the user’s call-to-action in real-time, in the video,
while the video is playing, without leaving or stopping the video.
For example, our technology allows a prospect or customer to click
on a product they see featured in a video and impulse buy it, or to
click on a calendar icon in the video to make an appointment with a
salesperson, among many other features and functionalities designed
to eliminate or reduce friction from the sales process for our
users. The verbCRM app is designed to be easy to use and navigate
and takes little time and training for a user to begin using the
app effectively. It usually takes less than four minutes for a
novice user to create an interactive video from our app. Users can
add interactive icons to pre-existing videos, as well as to newly
created videos shot with practically any mobile device. verbCRM
interactive videos can be distributed via email, text messaging,
chat app, or posted to popular social media directly and easily
from our app. No software download is required to view Verb
interactive videos on virtually any mobile or desktop device,
including smart TVs.
verbLEARN
is an interactive, video-based learning management system that
incorporates all of the clickable in-video technology featured in
our verbCRM application and adapts them for use by educators for
video-based education. verbLEARN is used by enterprises seeking to
educate a large sales team or a customer base about new products,
or elicit feedback about existing products. It also incorporates
Verb’s proprietary data collection and analytics capabilities that
inform users in real time when and for how long the viewers watched
the video, how many times they watched it, and what they clicked
on, in addition to adding gamification features that enhance the
learning aspects of the application.
verbLIVE
is a next-generation interactive live-stream platform with in-video
ecommerce capabilities for sales reps that allows them to utilize a
variety of novel sales-driving features, including placing
interactive icons on-screen that appear on the screens of all
viewers, providing in-video click-to-purchase capabilities for
products or services featured in the live video broadcast, in
real-time, driving friction-free selling. verbLIVE also provides
the sales reps with real-time viewer engagement data and
interaction analytics. verbLIVE is entirely browser-based, allowing
it to function easily and effectively on all devices without
requiring the host or the viewers to download software, and is
secured through end-to-end encryption.
verbPULSE
is a business/augmented intelligence notification-based sales
enablement platform feature set that tracks users’ interactions
with current and prospective customers and then helps coach users
by telling them what to do next in order to close the sale,
virtually eliminating the lack of skill, training and experience
among sales reps from the selling process.
verbTEAMS
is our interactive, video-based CRM for professional sports teams,
small-and medium-sized businesses and solopreneurs. verbTEAMS also
incorporates verbLIVE as a bundled application. verbTEAMS features
self-sign-up, self-onboarding, self-configuring, content management
system capabilities, user level administrative capabilities, and
high-quality analytics capabilities in both mobile and desktop
platforms that sync with one another. It also has a built-in
one-click sync capability with Salesforce.
MARKET.live
is akin to a virtual shopping mall, a centralized online
destination where shoppers could explore hundreds, and over time
thousands, of shoppable stores for their favorite brands,
influencers, creators and celebrities, all of whom can host
livestream shopping events from their virtual stores that can be
seen by all shoppers at the virtual mall. Every store operator can
host livestream events, even simultaneously, and over time we
expect there will be thousands of such events, across numerous
product and service categories, being hosted by people from all
over the world, always on – 24/7 - where shoppers could communicate
with the hosts and ask questions about products directly to the
host in real-time through an on-screen chat visible to all
shoppers. Shoppers can invite their friends and family to join them
at any of the live shopping events to share the experience - to
communicate directly with each other in real time, and then simply
click on a non-intrusive - in-video overlay to place items in an
on-screen shopping cart for purchase – all without interrupting the
video. Shoppers can visit any number of other shoppable events to
meet up and chat with friends, old and new, and together watch,
shop and chat with the hosts, discover new products and services,
and become part of an immersive entertaining social shopping
experience. Throughout the experience, the shopping cart follows
shoppers seamlessly from event to event, shoppable video to
shoppable video, host to host, product to product.
The
MARKET.live business model is a simple but next-level B to B play.
It is a multi-vendor platform, with a single follow-me style
unified shopping cart, and robust ecommerce capabilities with the
tools for consumer brands, big box brick and mortar stores,
boutiques, influencers and celebrities to connect with their
clients, customers, fans, followers, and prospects by providing a
unique, interactive social shopping experience that we believe
could keep them coming back and engaged for hours.
A big
differentiator for MARKET.live is that it also provides an online
meeting place for friends and family to meet, chat, shop and enjoy
a fun, immersive shopping experience in real time together from
anywhere and everywhere in the world. MARKET.live will provide
vendors with extensive business building analytics capabilities not
available on, and not shared by many operators of other social
media sites who regard that information as valuable proprietary
property. All vendors on MARKET.live will retain this valuable
intelligence for their own, unlimited use.
MARKET.live
allows vendors an opportunity to reach not only the shoppers they
invite to the site from their own client and contact lists, but
also those shoppers who came to the site independently who will
discover these vendors as they browse through the many other
shoppable events hosted simultaneously on MARKET.live 24/7, from
around the world. We believe our revenue model will be attractive
to vendors and will consist of SaaS recurring revenue as well as a
share of revenue generated through sales on the
platform.
MARKET.live
is simply a platform; we hold no inventory, we take no inventory
risk, and each vendor manages their own packing and fulfillment, as
well as returns. Only vendors that have a demonstrated ability to
manage inventory and fulfillment are selected to participate on
MARKET.live.
As we
continue onboarding vendors to the platform, we are seeing
increased interest from product manufacturers seeking to embrace
MARKET.live’s direct-to-consumer selling capabilities, cutting-out
distribution channel partners in order to reduce costs and increase
profitability. As the economy tightens, we expect that trend to
accelerate.
MARKET.live
will also incorporate a modified version of our verbLIVE
Attribution technology, allowing vendors who so choose, to leverage
extremely powerful, built-in affiliate marketing capabilities.
Non-vendor visitors to the site can search for those vendors that
have activated the built-in affiliate marketing feature for their
events and be compensated when people they referred to that vendor,
purchase products or services during that vendor’s shopping event.
We expect that this feature, unique to MARKET.live, will drive many
more shoppers who will be referred from all over the world,
producing a cross-pollination effect enhancing the revenue
opportunities for all MARKET.live vendors, while also creating an
attractive income generating opportunity for non-vendor MARKET.live
patrons.
MARKET.live
is an entirely new platform, built wholly independently and
separate from our verbLIVE sales platform, representing what we
believe is the state of the art of shoppable video technology.
Whereas verbLIVE is a sales tool for sales reps that subscribe
either directly or through their principal to verbCRM or verbTEAMS,
MARKET.live is a multivendor social shopping platform for
retailers, brands, manufacturers, creators and influencers who seek
to participate in an open market-style eco-system environment. More
recently, we are beginning to see interest from existing verbLIVE
clients who see the value of MARKET.live as a corporate
communications tool for use in sales, marketing, lead-generation,
training and recruitment initiatives.
We
recently launched our “Creators on MARKET,” a new program that
allows creators to monetize their content through livestream
shopping and personalized storefronts on MARKET.live. The program
is being marketed to video content creators across multiple social
media channels. Through this new program, creators and influencers
can choose the products they love from hundreds of brands and
retailers on MARKET.live and offer their fans and followers those
products through livestream shopping events broadcast live on
MARKET.live and simulcast on the creators’ existing social
platforms. They can also offer their favorite products through the
Creators’ personally branded storefronts they can establish quickly
and easily on MARKET.live. Depending on the products chosen,
Creators can earn between 5% and 20% of their gross sales at no
cost and no risk to the Creators selected to participate in the
program.
With
more than 12 million products from brands like Athleta, Best Buy,
Target, Container Store, Banana Republic, GAP, Saks Off 5th,
SSENSE, LOFT, DERMSTORE, INTERMIX, UNCOMMON GOODS, and many more,
Creators can choose to feature their favorite products and promote
and sell them to their fans and followers. All MARKET.live events
are interactive so followers and fans can chat with the Creators in
real time, as well as with one another, creating a more
entertaining and engaging social shopping experience. When their
interest level peaks, Creators’ fans and followers can click on the
screen to buy the products. Creators accepted into the program are
not required to make any investment in inventory, nor do they have
the burden of managing fulfillment or shipping. The only
requirement for them to remain in the program is for them to
continue to create and promote the same videos they’re already
doing on YouTube and elsewhere online. Livestream events are
recorded and available to watch in the Creators’ personally branded
stores on MARKET.live for those fans and followers to return 24/7
after the livestream events to browse and purchase the Creators’
featured products, as the recorded livestream videos remain
shoppable.
verbTV
will launch as a feature of our MARKET.live platform, serving to
draw an audience of people seeking to consume video content that is
also interactive and shoppable. We expect this additional audience
will also be exposed to and enhance the eco-system of shoppers and
retailers on MARKET.live. Over time it is anticipated that verbTV
will feature concerts, game shows, sports, including e-sports,
sitcoms, podcasts, special events, news, including live events, and
other forms of video entertainment that is all interactive and
shoppable. verbTV represents an entirely new distribution channel
for all forms of content by a new generation of content creators
looking for greater freedom to explore the creative possibilities
that a native interactive video platform can provide for their
audience. We believe content creators may also enjoy greater
revenue opportunities through the native ecommerce capabilities the
platform provides to sponsors and advertisers who will enjoy
real-time monetization, data collection and analytics. Through
verbTV, sponsors and advertisers will be able to accurately measure
the ROI from their marketing spend, instead of relying on imprecise
viewership information traditionally offered to television sponsors
and advertisers.
Verb Partnerships and Integrations
verbMAIL
for Microsoft Outlook and Saleforce Integration of verbLIVE and
verbTEAMS. verbMAIL is a product of our partnership with
Microsoft and is available as an add-in to Microsoft Outlook for
Outlook and Office 365 subscribers. verbMAIL allows users to create
interactive videos seamlessly within Outlook by clicking the
verbMAIL icon in the Outlook toolbar. The videos are automatically
added to an email and can be sent easily through Outlook using the
user’s contacts they already have in Outlook. The application
allows users to easily track viewer engagement and together with
other features represents an effective sales tool available for all
Outlook users worldwide. We have completed and deployed the
integration of verbLIVE into Salesforce and have a verbTEAMS sync
application for Salesforce users. To date, adoption of these
products has been low due in large part to management’s decision to
reduce and deploy development and marketing resources to other
areas of the Company’s business that it believes can generate a
greater return on investment.
Popular
Enterprise Back-Office System Integrations. We have integrated
verbCRM into systems offered by 19 of the most popular direct sales
back-office system providers, such as Direct Scale, Exigo, By
Design, Thatcher, Multisoft, Xennsoft, and Party Plan. Direct sales
back-office systems provide many of the support functions required
for direct sales operations, including payroll, customer genealogy
management, statistics, rankings, and earnings, among other direct
sales financial tracking capabilities. The integration into these
back-office providers, facilitated through our own API development,
allows single sign-on convenience for users, as well as enhanced
data analytics and reporting capabilities for all users. Our
experience confirms that our integration into these back-end
platforms accelerates the adoption of verbCRM by large direct sales
enterprises that rely on these systems and as such, we believe this
represents a competitive advantage.
Non-Digital Products and Services
Historically,
we provided certain non-digital services to some of our enterprise
clients such as printing and fulfillment services. We designed and
printed welcome kits and starter kits for their marketing needs and
provided fulfillment services, which consisted of managing the
preparation, handling and shipping of our client’s custom-branded
merchandise they use for marketing purposes at conferences and
other events. Due to COVID-19, we experienced a marked decline in
non-digital services and associated revenue, as reflected in our
current and historical financial statements, as our clients reduced
or eliminated in-person conferences and other events. This
reduction in non-digital services was nevertheless consistent with
management’s strategy to exit this area of our business due to the
low margin, high costs and limited scalability of this component of
our business.
In
furtherance of the strategy, in May 2020, we executed a contract
with Range Printing (“Range”), a company in the business of
providing enterprise class printing, sample assembly, warehousing,
packaging, shipping, and fulfillment services. Pursuant to the
contract, through an automated process we have established for this
purpose, Range receives orders for samples and merchandise from us
as and when we receive them from our clients and users, and print,
assemble, store, package and ship such samples and merchandise on
our behalf. The Range contract provides for a service fee
arrangement based upon the specific services to be provided by
Range that is designed to maintain our relationship with our
clients by continuing to service their non-digital needs, while
eliminating the labor and overhead costs associated with the
provision of such services by us. Effective April 1, 2022, we
expanded our relationship with Range when we entered into a
customer referral agreement with them for our cart site and
printing business. Under the agreement, we earn 10% commission for
customers referrals, 8% on merchandise sales and certain cart site
design fees which will all be recognized as non-digital revenue.
Prior to entering into such agreement, we were recognizing revenues
and cost of revenues associated with the non-digital business in
the condensed consolidated statements of operations.
For
these reasons, management has suggested that a more accurate
measure of our performance is the historical growth of our SaaS and
digital business and associated revenue, which has been the focus
of our initiatives, while we have continued to exit the low margin,
non-digital business. While the SaaS and digital business has grown
year over year, that growth is not readily apparent when analyzing
our top-line revenue because the total revenue represents the
growing SaaS and digital business upon which we are focused,
off-set by the declining non-digital business we are intentionally
exiting.
Our Market
Historically,
our client base consisted primarily of multi-national direct sales
enterprises to whom we provide white-labeled, client-branded
versions of our products. During the year ended December 31, 2021,
our client base expanded to include large enterprises in the life
sciences sector, professional sports franchises, educational
institutions, and not-for-profit organizations, as well as clients
in the entertainment industry, and the burgeoning CBD industry,
among other business sectors. As of September 30, 2022, we provided
subscription-based application services to approximately 150
enterprise clients for use in over 100 countries and in over 48
languages. Since inception, we have had more than 3.4 million
downloads of our verbCRM applications across all of the
white-labelled versions created for clients on our
platform.
Corporate
Information
We
are a Nevada corporation that was incorporated in February 2005.
Our principal executive and administrative offices are located at
782 South Auto Mall Drive, American Fork, Utah 84003, and our
telephone number is (855) 250-2300. Our website address is
https://www.verb.tech/. Information on or accessed through our
website is not incorporated into this prospectus and is not a part
of this prospectus.
THE
OFFERING
Common
Stock to be Offered
by Us |
|
36,051,000
shares. |
|
|
|
Common
Stock to be Outstanding Immediately after this Offering |
|
152,952,200
shares. |
|
|
|
Use
of Proceeds |
|
We
estimate the net proceeds to us from this offering will be
approximately $6.6 million, after deducting underwriting discounts
and fees and estimated offering expenses payable by us. We intend
to use the net proceeds from the sale of the securities offered by
this prospectus for general corporate purposes and repayment of
outstanding debt in the amount of up to $1.6 million. See “Use of
Proceeds” on page S-9. |
|
|
|
Risk
Factors |
|
Investing
in our common stock involves significant risks. You should read the
“Risk Factors” section beginning on page S-7 of this prospectus
supplement and in the documents incorporated by reference in this
prospectus supplement and accompanying prospectus for a discussion
of factors to consider before deciding to purchase shares of our
common stock. |
|
|
|
Listing |
|
Our
common stock is listed on the Nasdaq Capital Market under the
symbol “VERB.” The shares of common stock offered hereby will be
listed on the Nasdaq Capital Market. |
The
number of shares of common stock that will be outstanding
immediately after this Offering is based on shares of common stock
outstanding as of January 23, 2023 and excludes the
following:
|
● |
5,884,900
shares of common stock issuable upon the exercise of outstanding
stock options with a weighted-average exercise price of $1.24 per
share; |
|
|
|
|
● |
3,091,470
shares of common stock issuable upon vesting of restricted stock
unit awards with a weighted-average exercise price of $0.64 per
share; |
|
|
|
|
● |
641,924
shares of common stock reserved for future issuance under our 2019
Omnibus Incentive Plan; and |
|
|
|
|
● |
38,071,408
shares of common stock issuable upon exercise of warrants to
purchase common stock with a weighted-average exercise price of
$0.97 per share. |
RISK
FACTORS
Investing
in our securities involves a high degree of risk. Before making an
investment decision, you should carefully consider the risks
described in the section entitled “Risk Factors” in our most
recent Annual Report on Form 10-K and subsequent Quarterly Reports
on Form 10-Q, as filed with the SEC, each of which are incorporated
by reference in this prospectus, as well as any amendments or
updates to our risk factors reflected in our subsequent filings
with the SEC, including in any applicable prospectus supplement. If
any of these risks actually occur, our business, financial
condition, results of operations and future prospects could be
materially and adversely affected. In that case, the trading price
or value of our securities could decline and you might lose all or
part of your investment. For additional information, refer to the
section entitled “Where You Can Find More
Information.”
Risks
Related to This Offering
You will experience immediate and substantial dilution as a result
of this offering and may experience additional dilution in the
future.
Since
the price per share of our common stock being offered is higher
than the net tangible book value per share of our common stock, you
will suffer substantial dilution in the net tangible book value of
the common stock you purchase in this offering. Based on the public
offering price of $0.20 per share, and after deducting the
underwriting discount and estimated offering expenses payable by
us, if you purchase shares of common stock in this offering, you
will suffer immediate and substantial dilution of $0.17 per share
in the net tangible book value of the common stock. See the section
entitled “Dilution” in this prospectus for a more detailed
discussion of the dilution you will incur if you purchase common
stock in this offering.
Because we will have broad discretion and flexibility in how we use
the net proceeds from this offering, we may use the net proceeds in
ways in which you disagree.
We
currently intend 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.
See “Use of Proceeds.” Our management will have significant
discretion and flexibility in applying the net proceeds of this
offering. You will be relying on the judgment of our management
with regard to the use of these net proceeds, and you will not have
the opportunity, as part of your investment decision, to assess
whether the net proceeds are being used appropriately. The failure
of our management to use such funds effectively could have a
material adverse effect on our business, financial condition,
operating results and cash flow.
Additional stock offerings in the future may dilute then existing
stockholders’ percentage ownership of our
company.
Given
our plans and expectations that we may need additional capital, we
may need to issue additional shares of common stock or securities
convertible or exercisable for shares of common stock, including
convertible preferred stock, convertible notes, stock options or
warrants. The issuance of additional securities in the future will
dilute the percentage ownership of then existing
stockholders.
We have no plans to pay dividends on our common
stock.
We do
not anticipate paying any cash dividends on our common stock in the
foreseeable future. We currently intend to retain future earnings,
if any, to finance the expansion of our business. Our future
dividend policy is within the discretion of our board of directors
and will depend upon various factors, including our business,
financial condition, results of operations, capital requirements
and investment opportunities.
There is no public market for the pre-funded warrants being offered
in this offering.
There
is no established public trading market for the pre-funded warrants
being offered in this offering, and we do not expect a market to
develop. In addition, we do not intend to apply to list the
pre-funded warrants on any securities exchange or nationally
recognized trading system. Without an active market, the liquidity
of the pre-funded warrants will be limited.
Risks
Related to Our Common Stock
We are not in compliance with The NASDAQ Capital Market $1.00
minimum bid price requirement and failure to maintain compliance
with this standard could result in delisting and adversely affect
the market price and liquidity of our common
stock.
Our
common stock is currently traded on The NASDAQ Capital Market under
the symbol “VERB”. If we fail to meet any of the continued listing
standards of The NASDAQ Capital Market, our common stock will be
delisted from The NASDAQ Capital Market. These continued listing
standards include specifically enumerated criteria, such as a $1.00
minimum closing bid price.
On
May 12, 2022, we received a letter from The NASDAQ Stock Market
advising that the Company did not meet the minimum $1.00 per share
bid price requirement for continued inclusion on The NASDAQ Capital
Market pursuant to NASDAQ Marketplace Listing Rule 5550(a)(2). The
Company initially had a period of 180 calendar days, or until
November 8, 2022, to regain compliance. On November 9, 2022, we
were granted an additional 180-day period from the Nasdaq Stock
Market Listing Qualifications Staff, through May 8, 2023, to regain
compliance with the $1.00 minimum bid price requirement for
continued listing on the Nasdaq Capital Market. To demonstrate
compliance with this requirement, the closing bid price of our
common stock needs to be at least $1.00 per share for a minimum of
10 consecutive business days before May 8, 2023. In order to
satisfy this requirement, the
Company intends to continue actively monitoring the bid price for
its common stock between now and May 8, 2023 and will consider
available options to resolve the deficiency and regain compliance
with the minimum bid price requirement.
While
we intend to regain compliance with the minimum bid price rule,
there can be no assurance that we will be able to maintain
continued compliance with this rule or the other listing
requirements of The NASDAQ Capital Market. If we were unable to
meet these requirements, we would receive another delisting notice
from the Nasdaq Capital Market for failure to comply with one or
more of the continued listing requirements. If our common stock
were to be delisted from The NASDAQ Capital Market, trading of our
common stock most likely will be conducted in the over-the-counter
market on an electronic bulletin board established for unlisted
securities such as the OTC Markets or in the “pink sheets.” Such a
downgrading in our listing market may limit our ability to make a
market in our common stock and which may impact purchases or sales
of our securities.
CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This
prospectus supplement, the accompanying base prospectus, and the
documents incorporated by reference herein and therein, contain
“forward-looking statements” within the meaning of the federal
securities laws, which statements are subject to considerable risks
and uncertainties. These forward-looking statements are intended to
qualify for the safe harbor from liability established by the
Private Securities Litigation Reform Act of 1995. All statements
included or incorporated by reference in this prospectus, other
than statements of historical fact, are forward-looking statements.
You can identify forward-looking statements by the use of words
such as “anticipate,” “believe,” “continue” “could,” “expect,”
“intend,” “may,” “will,” or the negative of such terms, or other
comparable terminology. Forward-looking statements also include the
assumptions underlying or relating to such statements. In
particular, forward-looking statements included or incorporated by
reference in this prospectus relate to, among other things, our
future or assumed financial condition, results of operations,
liquidity, business forecasts and plans, strategic plans and
objectives, competitive environment and our expected use of the net
proceeds from this Offering. We caution you that the foregoing list
may not include all of the forward-looking statements made in this
prospectus.
Our
forward-looking statements are based on our management’s current
assumptions and expectations about future events and trends, which
affect or may affect our business, strategy, operations or
financial performance. Although we believe that these
forward-looking statements are based upon reasonable assumptions,
they are subject to numerous known and unknown risks and
uncertainties and are made in light of information currently
available to us. Our actual financial condition and results could
differ materially from those anticipated in these forward-looking
statements as a result of various factors, including those set
forth in the section entitled “Risk Factors” beginning on
page S-7 of this prospectus, beginning on page 1 of the
accompanying base prospectus, as well as in the other reports we
file with the SEC. You should read this prospectus with the
understanding that our actual future results may be materially
different from and worse than what we expect.
Moreover,
we operate in an evolving environment. New risk factors and
uncertainties emerge from time to time and it is not possible for
our management to predict all risk factors and uncertainties, nor
can we assess the impact of all factors on our business or the
extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any
forward-looking statements.
Forward-looking
statements speak only as of the date they were made, and, except to
the extent required by law or the Nasdaq Listing Rules, we
undertake no obligation to update or review any forward-looking
statement because of new information, future events or other
factors.
We
qualify all of our forward-looking statements by these cautionary
statements.
USE
OF PROCEEDS
We
estimate that the net proceeds from this offering will be
approximately $6.6 million, after deducting the estimated
underwriting discounts and commissions and estimated offering
expenses payable by us.
We
intend to use the net proceeds from the sale of the common stock
offered by this prospectus for general corporate purpose and
repayment of outstanding debt in the amount of up to $1.6
million.
Until
we use the net proceeds of this offering for the above purposes, we
intend to invest the funds in short-term, investment grade,
interest-bearing securities. We cannot predict whether the proceeds
invested will yield a favorable return. Until we have determined
the amount or timing of the expenditures, we will retain broad
discretion over the use of the net proceeds from this
offering.
CAPITALIZATION
The
following table sets forth our consolidated cash, cash equivalents
and capitalization as of September 30, 2022: Such information is set forth on the
following basis:
|
● |
on an
actual basis; and |
|
|
|
|
● |
on an
as adjusted basis to give effect to the sale by us of 36,051,000
shares of our common stock in this offering at a public offering
price of $0.20 per share, after deducting underwriting discounts
and estimated offering expenses payable of $0.2 million by us. On
the date of funding, the remaining amounts due on the convertible
notes will be repaid amounting to $1.6 million. |
You should read this table together with the section of this
prospectus supplement entitled “Use of Proceeds” and with the
financial statements and related notes and the other information
that we incorporate by reference into this prospectus supplement
and the accompanying prospectus.
|
|
As of September 30, 2022
(in thousands, except per
share data) |
|
|
|
Actual |
|
|
As Adjusted |
|
Cash |
|
$ |
921 |
|
|
$ |
5,921 |
|
Total debt, including current
maturities |
|
|
18,251 |
|
|
|
16,651 |
|
Total stockholders’ equity |
|
|
|
|
|
|
|
|
Common Stock, par value $0.0001 per
share, 200,000,000 shares authorized; 102,604,851 shares issued and
outstanding actual; |
|
|
10 |
|
|
|
14 |
|
Additional paid-in capital |
|
|
153,940 |
|
|
|
160,536 |
|
Accumulated
deficit |
|
|
(137,418 |
) |
|
|
(137,418 |
|
Total
stockholders’ equity |
|
$ |
16,532 |
|
|
|
23,132 |
|
Total
capitalization |
|
$ |
34,783 |
|
|
|
39,783 |
|
DILUTION
If
you invest in our common stock, your interest will be diluted
immediately to the extent of the difference between the offering
price per share and the adjusted net tangible book value per share
of our common stock after this offering.
After
giving effect to the sale by us of 12,500,000 shares of Common
Stock in October 2022 at the purchase price of $0.32 per share,
resulting in net proceeds of $3.6 million, our as
adjustednet
tangible book value as of September 30, 2022 was approximately
$(2.6) million, or $(0.02) per share. “Net tangible book value” is
total assets minus the sum of liabilities and intangible assets.
“Net tangible book value per share” is net tangible book value
divided by the total number of shares outstanding.
After
giving effect to the sale of the common stock in this offering at
the offering price set forth on the cover page of this prospectus
supplement and after deducting estimated underwriting discounts and
expenses payable by us, our as adjusted net tangible book value as
of September 30, 2022 would have been approximately $4.0 million or
$0.03 per share of common stock. This represents an immediate
increase in net tangible book value of $0.05 per share to our
existing stockholders and an immediate dilution in net tangible
book value of $0.17 per share to investors participating in this
offering. The following table illustrates this dilution per share
to investors participating in this offering:
Public offering price per share |
|
|
|
|
|
$ |
0.20
|
|
Net tangible book value per share as of September 30, 2022 |
|
$ |
(0.02 |
) |
|
|
|
|
Increase in net tangible book value
per share attributable to new investors in this offering |
|
$ |
0.05
|
|
|
|
|
|
As adjusted net tangible book value
per share after the offering |
|
|
|
|
|
$ |
0.03
|
|
Dilution per share to investors in
this offering |
|
|
|
|
|
$ |
0.17
|
|
The
number of shares of common stock used for purposes of this section
is based on the 102,604,851 shares outstanding as of September 30,
2022 and excludes the following:
|
● |
5,252,119
shares of common stock issuable upon the exercise of outstanding
stock options, with a weighted-average exercise price of $1.55 per
share; |
|
|
|
|
● |
2,071,849
shares of common stock issuable upon vesting of restricted stock
unit awards, with a weighted-average exercise price of $1.24 per
share; |
|
● |
3,315,538
shares of common stock reserved for future issuance under our 2019
Omnibus Incentive Plan; |
|
|
|
|
● |
25,651,407
shares of common stock issuable upon exercise of warrants to
purchase common stock, with a weighted-average exercise price of
$1.52 per share; |
|
|
|
|
●
|
1,209,610
shares of common stock issuable upon conversion of the outstanding
principal amount, plus accrued interest, of convertible notes due
2023 issued pursuant to a Securities Purchase Agreement on January
12, 2022, which have a conversion price of $3.00 per share;
and
|
|
|
|
|
● |
Any
additional shares of common stock we have issued or may issue from
time to time after that date. |
DESCRIPTION
OF THE SECURITIES WE ARE OFFERING
In
this offering, we are offering shares of our common
stock.
Common
Stock
The
material terms and provisions of our common stock and each other
class of our securities that qualifies or limits our common stock
are described under the caption “Description of Capital Stock”
starting on page 7 of this prospectus supplement. Our common stock
is listed on the Nasdaq Capital Market under the symbol “VERB.” Our
transfer agent and registrar for our common stock is VStock
Transfer, LLC.
UNDERWRITING
Aegis
Capital Corp. is the sole underwriter for the offering. We have
entered into an underwriting agreement dated January 24, 2023 with
the underwriter. Subject to the terms and conditions of the
underwriting agreement, we have agreed to sell to the underwriter
named below and the underwriter has agreed to purchase, at the
public offering price less the underwriting discounts and
commissions set forth on the cover page of this prospectus, the
following respective number of shares of our common
stock:
Underwriter |
|
Number of
Shares |
|
Aegis Capital Corp. |
|
|
36,051,000 |
|
The
underwriter is committed to purchase all the shares of common stock
offered by us, if it purchases any shares. The obligations of the
underwriter may be terminated upon the occurrence of certain events
specified in the underwriting agreement. Furthermore, pursuant to
the underwriting agreement, the underwriter’s obligations are
subject to customary conditions, representations and warranties
contained in the underwriting agreement, such as receipt by the
underwriter of officers’ certificates and legal
opinions.
The
underwriter proposes to offer the shares of common stock for sale
from time to time in one or more transactions on the NASDAQ Capital
Market, in the over-the-counter market, through negotiated
transactions or otherwise at market prices prevailing at the time
of sale, at prices related to prevailing market prices or at
negotiated prices, subject to receipt of acceptance by it and
subject to its right to reject any order in whole or in part. The
underwriter effects such transactions by selling the shares of
common stock to or through dealers, and such dealers may receive
compensation in the form of discounts, concessions or commissions
from the underwriter and/or purchasers of shares of common stock
for whom they may act as agents or to whom they may sell as
principal. The difference between the price at which the
underwriter purchases shares of common stock and the price at which
the underwriter resells such shares of common stock may be deemed
underwriting compensation
We
have agreed to indemnify the underwriter against specified
liabilities, including liabilities under the Securities Act of
1933, as amended, and to contribute to payments the underwriter may
be required to make in respect thereof.
The
underwriter is offering the common stock, subject to prior sale,
when, as and if issued to and accepted by it, subject to approval
of legal matters by its counsel and other conditions specified in
the underwriting agreement. The underwriter reserves the right to
withdraw, cancel or modify offers to the public and to reject
orders in whole or in part.
The
underwriter proposes to offer the common stock offered by us to the
public at the public offering price set forth on the cover of this
prospectus supplement. In addition, the underwriter may offer some
of the common stock to other securities dealers at such price less
a concession of $0.007 per share. After the initial offering, the
public offering price and concession to dealers may be
changed.
Discounts
and Commissions. The following table shows the public offering
price, underwriting discount and proceeds, before expenses, to
us.
|
|
Per Share |
|
|
Total |
|
Public offering price |
|
$ |
0.20 |
|
|
$ |
7,210,200 |
|
Underwriting
discount (6%) |
|
$ |
0.012 |
|
|
$ |
432,612 |
|
Proceeds, before expenses, to us |
|
$ |
0.188 |
|
|
$ |
6,777,588 |
|
We
have also agreed to pay all expenses relating to the offering,
including (a) all filing fees and expenses relating to the
registration of the shares to be sold in the offering with the
Securities and Exchange Commission; (b) all fees associated with
the review of the offering by FINRA; (c) all fees and expenses
relating to the listing of such shares on the NASDAQ Capital
Market; (d) all fees, expenses and disbursements relating to the
registration, qualification or exemption of securities offered
under the “blue sky” securities laws designated by the underwriter;
(e) all fees, expenses and disbursements relating to the
registration, qualification or exemption of securities offered
under the securities laws of foreign jurisdictions designated by
the underwriter; (f) the costs of all mailing and printing of the
offering documents; (g) transfer and/or stamp taxes, if any,
payable upon the transfer of the shares from the Company to the
underwriter; (h) fees and expenses of our legal counsel and
accountants; and (i) “road show” expenses, diligence fees and the
fees and expenses of the underwriter’s legal counsel not to exceed
$75,000.
We
estimate that the total expenses of the offering, excluding the
underwriting discount, will be approximately $0.2
million.
Discretionary
Accounts. The underwriter does not intend to confirm sales of
the securities offered hereby to any accounts over which they have
discretionary authority.
Lock-Up
Agreements. Pursuant to certain “lock-up” agreements, (a) our
executive officers and directors as of the pricing date of the
offering, have agreed, subject to certain exceptions, not to offer,
issue, sell, contract to sell, encumber, grant any option for the
sale of or otherwise dispose of any securities of the company
without the prior written consent of the underwriter, for a period
of 60 days from the date of the offering, and (b) we, and any
successor, have agreed, subject to certain exceptions, not to for a
period of 60 days from the date of the offering (1) offer, sell or
otherwise transfer or dispose of, directly or indirectly, any
shares of capital stock of the Company or (2) file or caused to be
filed any registration statement with the SEC relating to the
offering of any shares of our capital stock or any securities
convertible into or exercisable or exchangeable for shares of our
capital stock.
This
lock-up provision applies to common stock and to securities
convertible into or exchangeable or exercisable for common stock.
It also applies to common stock owned now or acquired later by the
person executing the agreement or for which the person executing
the agreement later acquires the power of disposition. The
exceptions permit, among other things and subject to restrictions,
the issuance of common stock upon the exercise of outstanding stock
options and warrants or other outstanding convertible securities,
the issuance of redeemable voting preferred shares for the limited
purpose of certain recapitalization matters and the issuance of
certain common stock dividends to all common
shareholders.
Electronic
Offer, Sale and Distribution of Shares. A prospectus supplement
in electronic format may be made available on the websites
maintained by the underwriter or selling group members, if any,
participating in this offering and the underwriter participating in
this offering may distribute prospectus supplements electronically.
The underwriter may agree to allocate a number of shares to
underwriters and selling group members for sale to their online
brokerage account holders. Internet distributions will be allocated
by the underwriter and selling group members that will make
internet distributions on the same basis as other allocations.
Other than the prospectus supplement in electronic format, the
information on these websites is not part of this prospectus
supplement or the registration statement of which this prospectus
supplement forms a part, has not been approved or endorsed by us or
any underwriter in its capacity as underwriter, and should not be
relied upon by investors.
Other
Relationships. The underwriter and its affiliates may in the
future provide various investment banking, commercial banking and
other financial services for us and our affiliates for which they
may receive customary fees; however, except as disclosed in this
prospectus supplement, we have no present arrangements with the
underwriter for any further services.
Stabilization.
In connection with this offering, the underwriter may engage in
stabilizing transactions, syndicate covering transactions, and
penalty bids in connection with our common stock.
Stabilizing
transactions permit bids to purchase shares of common stock so long
as the stabilizing bids to not exceed a specified
maximum.
Syndicate
covering transactions involve purchases of common stock in the open
market after the distribution has been completed in order to cover
syndicate short positions. Such a naked short position would be
closed out by buying securities in the open market. A naked short
position is more likely to be created if the underwriter is
concerned that there could be downward pressure on the price of the
securities in the open market after pricing that could adversely
affect investors who purchase in the offering.
Penalty
bids permit the underwriter to reclaim a selling concession from a
syndicate member when the securities originally sold by the
syndicate member are purchased in a stabilizing or syndicate cover
transaction to cover syndicate short positions. These stabilizing
transactions, syndicate covering transactions and penalty bids may
have the effect of raising or maintain the market price of our
common stock or preventing a decline in the market price of our
common stock. As a result, the price of our common stock in the
open market maybe higher than it would otherwise be in the absence
of these transactions. Neither we nor the underwriter makes any
representation or prediction as to the effect that the transactions
described above may have on the price of our common stock. These
transaction may be effected on the NASDAQ Capital Market, in the
over-the-counter market or otherwise and, if commenced, may be
discontinued at any time.
Passive
market making. In connection with this offering, the
underwriter and selling group members may engage in passive market
making transactions in our common stock in accordance with Rule 103
of Regulation M under the Exchange Act, during a period before the
commencement of offers or sales of the shares and extending through
the completion of the distribution. A passive market maker must
display its bid at a price not in excess of the highest independent
bid of that security. However, if all independent bids are lowered
below the passive market maker’s bid, that bid must then be lowered
when specified purchase limits are exceeded.
Offer
restrictions outside the United States
Other
than in the United States, no action has been taken by us or the
underwriter that would permit a public offering of the securities
offered by this prospectus supplement in any jurisdiction where
action for that purpose is required. The securities offered by this
prospectus supplement may not be offered or sold, directly or
indirectly, nor may this prospectus supplement or any other
offering material or advertisements in connection with the offer
and sale of any such securities be distributed or published in any
jurisdiction, except under circumstances that will result in
compliance with the applicable rules and regulations of that
jurisdiction. Persons into whose possession this prospectus
supplement comes are advised to inform themselves about and to
observe any restrictions relating to the offering and the
distribution of this prospectus supplement. This prospectus
supplement does not constitute an offer to sell or a solicitation
of an offer to buy any securities offered by this prospectus
supplement in any jurisdiction in which such an offer or a
solicitation is unlawful.
LEGAL
MATTERS
The validity of the securities being offered under this prospectus
by us will be passed upon for us by Sichenzia Ross Ference LLP, New
York, New York. The underwriter is being represented in connection
with this offering by Kaufman & Canoles, P.C., Richmond,
Virginia.
EXPERTS
The
consolidated financial statements of Verb Technology Company, Inc.
as of December 31, 2021 and 2020, and for the years then ended
appearing in Verb Technology Company, Inc.’s From 10-K for the
fiscal year ended December 31, 2021, have been audited by Weinberg
& Company, P.A., independent registered public accounting firm,
as set forth in their report thereon, included therein, and
incorporated herein by reference. Such financial statements are
incorporated by reference herein in reliance upon such report of
Weinberg & Company, P.A. pertaining to such financial
statements given on the authority of such firm as experts in
accounting and auditing.
WHERE
YOU CAN FIND MORE INFORMATION
We
file annual, quarterly and other reports, proxy statements and
other information with the SEC. Our SEC filings are available to
the public over the Internet at the SEC’s website at
http://www.sec.gov. Our Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q, and Current Reports on Form 8-K, including
any amendments to those reports, and other information that we file
with or furnish to the SEC pursuant to Section 13(a) or 15(d) of
the Exchange Act can also be accessed free of charge through the
Internet. These filings will be available as soon as reasonably
practicable after we electronically file such material with, or
furnish it to, the SEC.
We
have filed with the SEC a registration statement under the
Securities Act of 1933 relating to the offering of these
securities. The registration statement, including the attached
exhibits, contains additional relevant information about us and the
securities. This prospectus supplement and the accompanying
prospectus do not contain all of the information set forth in the
registration statement. You can obtain a copy of the registration
statement, at prescribed rates, from the SEC at the address listed
above. The registration statement and the documents referred to
below under “Information Incorporated by Reference” are also
available on our Internet website, https://www.verb.tech/. We have
not incorporated by reference into this prospectus supplement or
the accompanying prospectus the information on our website, and you
should not consider it to be a part of this prospectus supplement
or the accompanying prospectus.
INFORMATION
INCORPORATED BY REFERENCE
The
SEC allows us to “incorporate by reference” into this prospectus
much of the information we file with the SEC, which means that we
can disclose important information to you by referring you to those
publicly available documents. The information that we incorporate
by reference into this prospectus is considered to be part of this
prospectus. These documents may include Annual Reports on Form
10-K, Quarterly Reports on Form 10-Q and Current Reports on Form
8-K, as well as proxy and information statements. You should read
the information incorporated by reference because it is an
important part of this prospectus.
This
prospectus incorporates by reference the documents listed below,
other than those documents or the portions of those documents
deemed to be furnished and not filed in accordance with SEC
rules:
|
● |
our
Annual Report on Form 10-K for the fiscal year
ended December 31, 2021 filed with the SEC on March 31,
2022; |
|
|
|
|
● |
our
Amendment No. 1 to our Annual Report on Form 10-K/A for the fiscal year
ended December 31, 2021 filed with the SEC on April 12,
2022; |
|
|
|
|
● |
Our
Quarterly Report on Form 10-Q for the quarter ended
March 31, 2022 filed with the SEC on May 16, 2022: |
|
|
|
|
● |
Our
Quarterly Report on Form 10-Q for the quarter ended
June 30, 2022 filed with the SEC on August 15, 2022: |
|
|
|
|
● |
Our
Quarterly Report on Form 10-Q for the quarter ended
September 30, 2022 filed with the SEC on November 14,
2022: |
|
|
|
|
● |
our
Current Reports on Form 8-K filed with the SEC on January 13, 2022, January 24, 2022, April 22, 2022, October 24, 2022, October 28, 2022, November 23, 2022, and January 9, 2023; and |
|
|
|
|
● |
the
description of our securities contained in Exhibit 4.17 of our Annual Report
on Form 10-K for the fiscal year ended December 31, 2019 filed with
the SEC on May 14, 2020, including any amendment or report filed
for the purpose of updating such description. |
We
also incorporate by reference any future filings (other than
current reports furnished under Item 2.02 or Item 7.01 of Form 8-K,
and exhibits filed on such form that are related to such items,
unless such Form 8-K expressly provides to the contrary) made with
the SEC pursuant to Sections 13(a), 13(c), 14 or 15(d) of the
Exchange Act after the date of this prospectus supplement but prior
to the termination of the offering, and such future filings will
become a part of this prospectus from the respective dates that
such documents are filed with the SEC. Any statement contained
herein, or in a document incorporated or deemed to be incorporated
by reference herein, shall be deemed to be modified or superseded
for purposes hereof or of the related prospectus supplement to the
extent that a statement contained herein or in any other
subsequently filed document which is also incorporated or deemed to
be incorporated herein modifies or supersedes such statement. Any
such statement so modified or superseded shall not be deemed,
except as so modified or superseded, to constitute a part of this
prospectus.
You
may obtain copies of the documents incorporated by reference in
this prospectus from us free of charge by requesting them in
writing or by telephone at the following address:
Verb
Technology Company, Inc.
782
South Auto Mall Drive
American
Fork, Utah 84003
Attn:
Investor Relations
Telephone:
(855) 250-2300
PROSPECTUS
$100,000,000

VERB
TECHNOLOGY COMPANY, INC.
Common
Stock
Preferred
Stock
Debt
Securities
Warrants
Units
We
may offer and sell, from time to time in one or more offerings, any
combination of common stock, preferred stock, debt securities,
warrants and/or units having an aggregate initial offering price
not to exceed $100,000,000. The preferred stock may be convertible
into or exchangeable for shares of our common stock, other shares
of our preferred stock or warrants. The debt securities may be
convertible into or exchangeable for shares of our common stock,
shares of our preferred stock, warrants or other debt securities.
The warrants may be exercisable for shares of our common stock,
shares of our preferred stock, debt securities and/or units. Each
unit will be comprised of two or more of the other securities
described in this prospectus in any combination, which may or may
not be separable from one another.
This
prospectus provides a general description of the securities we may
offer. Each time we sell a particular class of securities, we will
provide specific terms of the securities offered in a supplement to
this prospectus. The prospectus supplement may also add, update or
change information in this prospectus. You should read this
prospectus and any prospectus supplement, as well as the documents
incorporated by reference or deemed to be incorporated by reference
herein or therein, carefully before you invest in any of the
securities offered pursuant to this prospectus.
This
prospectus may not be used to offer or sell our securities unless
accompanied by a prospectus supplement relating to the offered
securities.
These
securities may be sold directly by us, through agents designated
from time to time, to or through underwriters or dealers, or
through a combination of these methods on a continuous or delayed
basis. For additional information on the methods of sale, refer to
the section entitled “Plan of Distribution.” We will
describe the plan of distribution for any particular offering of
our securities in a prospectus supplement. If any agents,
underwriters or dealers are involved in the sale of any securities
with respect to which this prospectus is being delivered, we will
set forth in a prospectus supplement the names of such agents,
underwriters or dealers and any applicable fees, commissions,
discounts and over-allotment options. We will also set forth in a
prospectus supplement the price to the public of such securities
and the net proceeds we expect to receive from such
sale.
Our
common stock is listed on The Nasdaq Capital Market under the
symbol “VERB.” On March 30, 2022, the last reported sale price of
our common stock on The Nasdaq Capital Market was $0.99 per
share.
INVESTING
IN OUR SECURITIES INVOLVES A HIGH DEGREE OF RISK. YOU SHOULD
CAREFULLY REVIEW THE RISKS AND UNCERTAINTIES DESCRIBED IN THE
SECTION ENTITLED “RISK FACTORS” BEGINNING ON PAGE 4 OF THIS
PROSPECTUS, AS WELL AS THE RISKS AND UNCERTAINTIES DESCRIBED UNDER
A SIMILAR HEADING IN ANY APPLICABLE PROSPECTUS SUPPLEMENT AND IN
THE DOCUMENTS WE INCORPORATE BY REFERENCE HEREIN OR
THEREIN.
Neither
the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or
passed upon the accuracy or adequacy of this prospectus. Any
representation to the contrary is a criminal
offense.
The
date of this prospectus is April 14, 2022
TABLE
OF CONTENTS
PROSPECTUS
ABOUT THIS PROSPECTUS
This
prospectus is part of a registration statement that we filed with
the Securities and Exchange Commission (the “SEC”) using a “shelf”
registration process. By using a shelf registration process, we may
offer and sell any combination of the securities described in this
prospectus from time to time in one or more offerings with an
aggregate initial offering price not to exceed $100,000,000. We
have provided to you in this prospectus a general description of
the securities we may offer. Each time we offer or sell any of our
securities under this prospectus, we will provide specific terms of
the securities offered in a supplement to this
prospectus.
We
may add, update or change any of the information contained in this
prospectus or in any accompanying prospectus supplement we may
authorize to be delivered to you. To the extent there is a conflict
between the information contained in this prospectus and any
accompanying prospectus supplement, you should rely on the
information in the prospectus supplement, provided that if any
statement in one of these documents is inconsistent with a
statement in another document having a later date—for example, a
document incorporated by reference in this prospectus or any
prospectus supplement—the statement in the document having the
later date modifies or supersedes the earlier statement. Any
statement so modified will be deemed to constitute a part of this
prospectus only as so modified, and any statement so superseded
will be deemed not to constitute a part of this prospectus. This
prospectus, together with any accompanying prospectus supplement,
includes all material information relating to an offering pursuant
to this registration statement.
You
should rely only on the information contained in this prospectus,
in any accompanying prospectus supplement, or in any document
incorporated by reference herein or therein. We have not authorized
anyone to provide you with any different information. We take no
responsibility for, and can provide no assurance as to the
reliability of, any other information that others may provide to
you. The information contained in this prospectus, in any
applicable prospectus supplement, and in the documents incorporated
by reference herein or therein, is accurate only as of the date
such information is presented. Our business, financial condition,
results of operations and future prospects may have changed since
those respective dates.
This
prospectus and any accompanying prospectus supplement does not
constitute an offer to sell or the solicitation of an offer to buy
any securities other than the registered securities to which they
relate, nor does this prospectus and any accompanying prospectus
supplement constitute an offer to sell or the solicitation of an
offer to buy securities in any jurisdiction to any person to whom
it is unlawful to make such offer or solicitation in such
jurisdiction. This prospectus may not be used to offer or sell our
securities unless accompanied by a prospectus supplement relating
to the offered securities.
The
registration statement containing this prospectus, including the
exhibits to the registration statement, provides additional
information about us and the securities offered pursuant to this
prospectus. For a more complete understanding of the offering of
the securities, you should refer to the registration statement,
including its exhibits. The registration statement can be read on
the SEC’s website referenced within the section entitled “Where
You Can Find More Information.”
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING INFORMATION
This
prospectus, any accompanying prospectus supplement, and the
documents incorporated by reference herein and therein, include
forward-looking statements within the meaning of Section 27A of the
Securities Act and Section 21E of the Securities Exchange Act of
1934, as amended (the “Exchange Act”). These forward-looking
statements are intended to qualify for the safe harbor from
liability established by the Private Securities Litigation Reform
Act of 1995. All statements other than statements of historical
fact included in this prospectus, any accompanying prospectus
supplement, or the documents incorporated by reference herein or
therein, are forward-looking statements, and we have attempted to
identify such forward-looking statements by terminology including
“aims,” “anticipates,” “believes,” “can,” “continue,” “could,”
“estimates,” “expects,” “goal,” “intends,” “may,” “plans,”
“potential,” “predicts,” “seeks,” “should,” “suggests,” “targets”
or “will” or the negative of these terms or other comparable
terminology.
Forward-looking
statements are not guarantees of future performance. Our
forward-looking statements are based on our management’s current
assumptions and expectations of future events and trends, which
affect or may affect our business, strategy, operations or
financial performance. Although we believe these forward-looking
statements are based upon reasonable assumptions, they are subject
to numerous known and unknown risks and uncertainties and are made
in light of information currently available to us. Many factors, in
addition to the factors described in this prospectus, may
materially and adversely affect our results as indicated in or
implied by our forward-looking statements. Because of these
uncertainties, you should not place undue reliance on these
forward-looking statements when making an investment decision. You
should read this prospectus, any accompanying prospectus
supplement, and the documents we incorporate by reference herein
and therein, in their entirety and with the understanding that our
actual future results may be materially different from and worse
than what we expect.
Moreover,
we operate in an evolving environment. New risk factors and
uncertainties emerge from time to time and it is not possible for
our management to predict all risk factors and uncertainties, nor
can we assess the impact of all factors on our business or the
extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any
forward-looking statements.
Forward-looking
statements speak only as of the date they were made and, except to
the extent required by law or the rules of the Nasdaq Stock Market,
we undertake no obligation to update or review any forward-looking
statement because of new information, future events or other
factors. You should, however, review the risks and uncertainties we
describe in the reports we will file from time to time with the SEC
after the date of this prospectus. For additional information,
refer to the section entitled “Where You Can Find More
Information.”
We
qualify all of our forward-looking statements by these cautionary
statements.
ABOUT THE COMPANY
Overview
We
are a software-as-a-service applications platform developer. Our
platform is comprised of a suite of interactive video-based sales
enablement business software products marketed on a subscription
basis. Our applications, available in both mobile and desktop
versions, are offered as a fully integrated suite, as well as on a
standalone basis, and include verbCRM, our white-labeled Customer
Relationship Management (“CRM”) application for large sales-based
enterprises; verbTEAMS, our CRM application for small- and
medium-sized businesses and solopreneurs; verbLEARN, our Learning
Management System application; verbLIVE, our Live Stream eCommerce
application; verbPULSE, our artificial intelligence notification
application; and verbMAIL, our interactive video sales
communication tool integrated with Microsoft Outlook.
Our
suite of applications can be distinguished from other sales
enablement applications because our applications utilize our
proprietary interactive video technology as the primary means of
communication between sales and marketing professionals and their
customers and prospects. Moreover, the proprietary data collection
and analytics capabilities of our applications inform our users on
their devices in real time, when and for how long their prospects
have watched a video, how many times such prospects watched it, and
what they clicked on, which allows our users to focus their time
and efforts on ‘hot leads’ or interested prospects rather than on
those that have not seen such video or otherwise expressed interest
in such content. Users can create their hot lead lists by using
familiar, intuitive ‘swipe left/swipe right’ on-screen navigation.
Our clients report that these capabilities provide for a much more
efficient and effective sales process, resulting in increased sales
conversion rates. We developed the proprietary patent-pending
interactive video technology, as well as several other
patent-issued and patent-pending technologies that serve as the
unique foundation for all our platform applications.
Corporate
Information
We
are a Nevada corporation. Our principal executive and
administrative offices are located at 782 South Auto Mall Drive,
American Fork, Utah 84003, and our telephone number is (855)
250-2300. Our website address is https://www.verb.tech/.
Information provided on or accessed through our website is not
incorporated into this prospectus and you should not consider such
information in deciding whether to purchase our securities.
References in this prospectus to our website are to inactive
textual references only.
RISK FACTORS
Investing
in our securities involves a high degree of risk. Before making an
investment decision, you should carefully consider the risks
described in the section entitled “Risk Factors” in our most
recent Annual Report on Form 10-K and subsequent Quarterly Reports
on Form 10-Q, as filed with the SEC, each of which are incorporated
by reference in this prospectus, as well as any amendments or
updates to our risk factors reflected in our subsequent filings
with the SEC, including in any applicable prospectus supplement. If
any of these risks actually occur, our business, financial
condition, results of operations and future prospects could be
materially and adversely affected. In that case, the trading price
or value of our securities could decline and you might lose all or
part of your investment. For additional information, refer to the
section entitled “Where You Can Find More
Information.”
The
risks and uncertainties we have described are not the only ones we
face. Additional risks and uncertainties not presently known to us
or that we currently deem immaterial may also affect our business,
financial condition, results of operations and future
prospects.
This
prospectus and the documents we incorporate by reference in this
prospectus contain forward-looking statements that involve risks
and uncertainties. Our actual results could differ materially from
those anticipated in these forward-looking statements as a result
of certain factors, including the risks and uncertainties mentioned
elsewhere in this prospectus. For more information, refer to the
section entitled “Cautionary Note Regarding Forward-Looking
Information.”
USE OF PROCEEDS
We
intend to use the net proceeds we receive from the sale of our
securities, and from the exercise of any warrants issued pursuant
hereto, for working capital and other general corporate
purposes.
We
may set forth additional information regarding the anticipated use
of proceeds from the sale of securities we offer under this
prospectus in a prospectus supplement relating to the specific
offering. We have not determined the amount of net proceeds to be
used from any specific offering. As a result, our management will
have broad discretion in the allocation of the net
proceeds.
Pending
the use of the net proceeds, we intend to invest the net proceeds
in high-quality, short-term interest-bearing obligations,
investment-grade instruments, certificates of deposit, or direct or
guaranteed obligations of the U.S. government.
GENERAL DESCRIPTION OF
SECURITIES
We
may offer and sell, from time to time in one or more offerings,
directly or through agents, dealers or underwriters, any
combination of common stock, preferred stock, debt securities,
warrants and/or units having an aggregate initial offering price
not to exceed $100,000,000. The preferred stock may be convertible
into or exchangeable for shares of our common stock, other shares
of our preferred stock or warrants. The debt securities may be
convertible into or exchangeable for shares of our common stock,
shares of our preferred stock, warrants or other debt securities.
The warrants may be exercisable for shares of our common stock,
shares of our preferred stock, debt securities and/or units. Each
unit will be comprised of two or more of the other securities
described in this prospectus in any combination, which may or may
not be separable from one another.
The
common stock, preferred stock, debt securities, warrants, and units
that may be issued hereunder are collectively referred to herein as
the securities. This prospectus provides you with a general
description of the securities we may offer. Each time we offer or
sell any securities under this prospectus, we will provide specific
terms of the securities offered in a supplement to this prospectus.
The prospectus supplement may also add, update or change
information in this prospectus. For additional information, refer
to the section entitled “About this Prospectus.”
Investing
in our securities involves a high degree of risk. Before making an
investment decision, you should carefully consider the risks
described in the section entitled “Risk Factors.”
DESCRIPTION OF CAPITAL
STOCK
The
following is a summary of all material characteristics of our
capital stock as set forth in our Articles of Incorporation, as
amended and restated (our “Articles of Incorporation”), and our
Amended and Restated Bylaws (our “Bylaws”). The summary does not
purport to be complete and is qualified in its entirety by
reference to our Articles of Incorporation and our Bylaws, and to
certain provisions of the Nevada Revised Statutes (“NRS”). We
encourage you to review complete copies of our Articles of
Incorporation and our Bylaws. You can obtain copies of these
documents by following the directions outlined in the sections
entitled “Where You Can Find More Information” and “Incorporation
of Certain Information by Reference” elsewhere in this
prospectus.
Authorized
Capital Stock
Our
authorized capital stock consists of 200,000,000 shares of common
stock, $0.0001 par value per share, and 15,000,000 shares of
preferred stock, $0.0001 par value per share, of which 6,000 shares
have been designated Series A Preferred Stock. As of December 31,
2021, we had 72,942,948 shares of common stock outstanding and no
shares of Preferred Stock outstanding.
Common
Stock
All
outstanding shares of our common stock are fully paid and
nonassessable. The following summarizes the rights of holders of
our common stock:
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a
holder of common stock is entitled to one vote per share on all
matters to be voted upon generally by the stockholders and are not
entitled to cumulative voting for the election of
directors; |
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subject
to preferences that may apply to shares of preferred stock
outstanding, the holders of common stock are entitled to receive
lawful dividends as may be declared by our board of
directors; |
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upon
our liquidation, dissolution or winding up, the holders of shares
of common stock are entitled to receive a pro rata portion
of all our assets remaining for distribution after satisfaction of
all our liabilities and the payment of any liquidation preference
on any outstanding shares of our preferred stock; |
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there
are no redemption or sinking fund provisions applicable to our
common stock; and |
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there
are no preemptive, subscription or conversion rights applicable to
our common stock. |
Undesignated
Preferred Stock
Our
board of directors is authorized, without further approval from our
stockholders, to create one or more series of preferred stock, and
to designate the rights, privileges, preferences, restrictions, and
limitations of any given series of preferred stock. Accordingly,
our board of directors may, without stockholder approval, issue
shares of preferred stock with dividend, liquidation, conversion,
voting, or other rights that could adversely affect the voting
power or other rights of the holders of our common stock. The
issuance of preferred stock could have the effect of restricting
dividends payable to holders of our common stock, diluting the
voting power of our common stock, impairing the liquidation rights
of our common stock, or delaying or preventing a change in control,
all without further action by our stockholders. Further, the
ability to authorize undesignated preferred stock makes it possible
for our board of directors to issue preferred stock with voting or
other rights or preferences that could impede the success of any
attempt to acquire us. These and other provisions may have the
effect of deferring hostile takeovers or delaying changes in
control or management.
Anti-Takeover
Effects of Nevada Law and Our Articles of Incorporation and
Bylaws
Certain
provisions of Nevada law, our Articles of Incorporation, and our
Bylaws contain provisions that could make the following
transactions more difficult: (i) an acquisition by means of a
tender offer; (ii) an acquisition by means of a proxy contest or
otherwise; or (iii) the removal of our incumbent officers and
directors. It is possible that these provisions could make it more
difficult to accomplish or could deter transactions that
stockholders may otherwise consider to be in their best interest or
in our best interests, including transactions that provide for
payment of a premium over the then-current trading price for our
shares.
These
provisions, summarized below, are intended to discourage coercive
takeover practices and inadequate takeover bids. These provisions
are also designed to encourage persons seeking to acquire control
of us to first negotiate with our board of directors. We believe
that the benefits of the increased protection of our potential
ability to negotiate with the proponent of an unfriendly or
unsolicited proposal to acquire or restructure us outweigh the
disadvantages of discouraging these proposals because negotiation
of these proposals could result in an improvement of their
terms.
Undesignated
Preferred Stock. The ability of our board of directors, without
action by the stockholders, to issue up to 14,994,000 shares of our
currently undesignated preferred stock, with voting or other rights
or preferences, could impede the success of any attempt to effect a
change of control.
Stockholder
Meetings. Our Bylaws provide that a special meeting of
stockholders may be called only by the chairman of our board of
directors, our chief executive officer, our president, or by a
majority of the members of our board of directors.
Stockholder
Action by Written Consent. Our Bylaws allow for any action that
may be taken at any annual or special meeting of the stockholders
to be taken without a meeting and without prior notice, if a
consent in writing, setting forth the action so taken, is signed by
the holders of outstanding shares having not less than the minimum
number of votes that would be necessary to authorize or take such
action at a meeting at which all shares entitled to vote thereon
were present and voted.
Stockholders
Not Entitled to Cumulative Voting. Our Bylaws do not permit
stockholders to cumulate their votes in the election of directors.
Accordingly, the holders of a majority of the outstanding shares of
our common stock entitled to vote in any election of directors can
elect all of the directors standing for election, if they choose,
other than any directors that holders of our preferred stock may,
from time to time, be entitled to elect.
Nevada
Business Combination Statutes. The “business combination”
provisions of Sections 78.411 to 78.444, inclusive, of the NRS,
generally prohibit a Nevada corporation with at least 200
stockholders from engaging in various “combination” transactions
with any interested stockholder for a period of two years after the
date of the transaction in which the person became an interested
stockholder, unless the transaction is approved by the board of
directors prior to the date the interested stockholder obtained
such status or the combination is approved by the board of
directors and thereafter is approved at a meeting of the
stockholders by the affirmative vote of stockholders representing
at least 60% of the outstanding voting power held by disinterested
stockholders, and extends beyond the expiration of the two-year
period, unless:
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the
combination was approved by the board of directors prior to the
person becoming an interested stockholder or the transaction by
which the person first became an interested stockholder was
approved by the board of directors before the person became an
interested stockholder or the combination is later approved by a
majority of the voting power held by disinterested stockholders;
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if
the consideration to be paid by the interested stockholder is at
least equal to the highest of: (a) the highest price per share paid
by the interested stockholder within the two years immediately
preceding the date of the announcement of the combination or in the
transaction in which it became an interested stockholder, whichever
is higher, (b) the market value per share of common stock on the
date of announcement of the combination and the date the interested
stockholder acquired the shares, whichever is higher, or (c) for
holders of preferred stock, the highest liquidation value of the
preferred stock, if it is higher. |
A
“combination” is generally defined to include mergers or
consolidations or any sale, lease exchange, mortgage, pledge,
transfer, or other disposition, in one transaction or a series of
transactions, with an “interested stockholder” having: (a) an
aggregate market value equal to 5% or more of the aggregate market
value of the assets of the corporation, (b) an aggregate market
value equal to 5% or more of the aggregate market value of all
outstanding shares of the corporation, (c) 10% or more of the
earning power or net income of the corporation, and (d) certain
other transactions with an interested stockholder or an affiliate
or associate of an interested stockholder.
In
general, an “interested stockholder” is a person who, together with
affiliates and associates, owns (or within two years, did own) 10%
or more of a corporation’s voting stock. The statute could prohibit
or delay mergers or other takeover or change in control attempts
and, accordingly, may discourage attempts to acquire us even though
such a transaction may offer our stockholders the opportunity to
sell their stock at a price above the prevailing market
price.
Nevada
Control Share Acquisition Statutes. The “control share”
provisions of Sections 78.378 to 78.3793, inclusive, of the NRS
apply to “issuing corporations” that are Nevada corporations with
at least 200 stockholders, including at least 100 stockholders of
record who are Nevada residents, and that conduct business directly
or indirectly in Nevada. The control share statute prohibits an
acquirer, under certain circumstances, from voting its shares of a
target corporation’s stock after crossing certain ownership
threshold percentages, unless the acquirer obtains approval of the
target corporation’s disinterested stockholders. The statute
specifies three thresholds: one-fifth or more but less than
one-third, one-third but less than a majority, and a majority or
more, of the outstanding voting power. Generally, once an acquirer
crosses one of the above thresholds, those shares in an offer or
acquisition and acquired within 90 days thereof become “control
shares” and such control shares are deprived of the right to vote
until disinterested stockholders restore the right. These
provisions also provide that if control shares are accorded full
voting rights and the acquiring person has acquired a majority or
more of all voting power, all other stockholders who do not vote in
favor of authorizing voting rights to the control shares are
entitled to demand payment for the fair value of their shares in
accordance with statutory procedures established for dissenters’
rights.
A
corporation may elect to not be governed by, or “opt out” of, the
control share provisions by making an election in its articles of
incorporation or bylaws, provided that the opt-out election must be
in place on the 10th day following the date an acquiring person has
acquired a controlling interest, that is, crossing any of the three
thresholds described above. We have not opted out of the control
share statutes, and will be subject to these statutes if we are an
“issuing corporation” as defined in such statutes.
The
effect of the Nevada control share statutes is that the acquiring
person, and those acting in association with the acquiring person,
will obtain only such voting rights in the control shares as are
conferred by a resolution of the stockholders at an annual or
special meeting. The Nevada control share statutes, if applicable,
could have the effect of discouraging takeovers.
Amendment
of Charter Provisions. The amendment of any of the above
provisions would require approval by holders of at least a majority
of the total voting power of all of our outstanding voting
stock.
The
provisions of Nevada law, our Articles of Incorporation, and our
Bylaws could have the effect of discouraging others from attempting
hostile takeovers. These provisions may also have the effect of
preventing changes in the composition of our board of directors and
management. It is possible that these provisions could make it more
difficult to accomplish transactions that stockholders may
otherwise deem to be in their best interests.
SoloFire
Exchange Agreement
In
connection with our acquisition of Ascend Certification, LLC, dba
SoloFire (“SoloFire”) on September 4, 2020, we entered into an
Exchange Agreement with the prior owners of SoloFire whereby we
agreed that on or after March 4, 2021, the prior owners of SoloFire
can exchange their Class B interests in our acquisition subsidiary,
Verb Acquisition Co., LLC, for up to an aggregate of 2,642,159
shares of our common stock.
Equity
Line of Credit
On
January 12, 2022, we entered into a common stock purchase agreement
(the “Common Stock Purchase Agreement”) with Tumim Stone Capital
LLC (the “Investor”). Pursuant to the agreement, we have the right,
but not the obligation, to sell to the Investor, and the Investor
is obligated to purchase, up to $50,000,000 of newly issued shares
of our common stock (the “Total Commitment”) from time to time
during the term of the agreement, subject to certain limitations
and conditions. The Total Commitment is inclusive of 607,287 shares
of Common Stock (the “Commitment Shares”), issued to the Investor
as consideration for its commitment to purchase shares of Common
Stock under the Common Stock Purchase Agreement.
The
Common Stock Purchase Agreement initially precludes us from issuing
and selling more than 14,747,065 shares of our common stock,
including the Commitment Shares and the shares of our common stock
issuable upon conversion of the Notes (as defined below), which
number of shares equals 19.99% of the number of shares of our
common stock that was issued and outstanding immediately prior to
the execution of the agreement, unless we obtain stockholder
approval to issue additional shares, or unless certain exceptions
apply. In addition, a beneficial ownership limitation in the
agreement initially limits us from directing the Investor to
purchase shares of Common Stock if such purchases would result in
the Investor beneficially owning more than 4.99% of the then
outstanding shares of our common stock (subject to an increase to
9.99% at the Investor’s option upon at least 61 calendar days’
notice).
Unless
earlier terminated, the Common Stock Purchase Agreement will
automatically terminate upon the earliest of (i) the expiration of
the 36-month period following the January 12, 2022, (ii) the
Investor’s purchase or receipt of the Total Commitment worth of our
common stock, or (iii) the occurrence of certain other events set
forth in the agreement. We have the right to terminate the
agreement at any time after commencement, at no cost or penalty,
upon five trading days’ prior written notice to the Investor. The
Investor has the right to terminate the agreement upon five trading
days’ prior written notice to us, but only upon the occurrence of
certain events set forth in the agreement.
Outstanding
Convertible Notes
On
January 12, 2022, we also entered into a securities purchase
agreement (the “Securities Purchase Agreement”) with the holders
named therein (collectively, the “Note Holders”) providing for the
sale and issuance of an aggregate original principal amount of
$6,300,000 in convertible notes due 2023 (each, a “Note” and,
collectively, the “Notes”). We received $6,000,000 in gross
proceeds from the sale of the Notes. The Notes bear interest of
6.0% per annum, have an original issue discount of 5.0%, mature 12
months from the closing date, and have an initial conversion price
of $3.00, subject to adjustment in certain circumstances as set
forth in the Note.
The
Securities Purchase Agreement initially precludes us from issuing
and selling more than 14,747,065 shares of our common stock,
including the shares of our common stock issuable pursuant to the
Common Stock Purchase Agreement, which number of shares equals
19.99% of the number of shares of our common stock that was issued
and outstanding immediately prior to the execution of the
agreement, unless we obtain stockholder approval to issue
additional shares, or unless certain exceptions apply.
Outstanding
Warrants
Listed
Common Stock Purchase Warrants
Exercisability.
The warrants are exercisable immediately upon issuance and at any
time during the five-year period following the date of issuance.
The warrants are exercisable, at the option of each holder, in
whole or in part, by delivering to us a duly executed exercise
notice accompanied by payment in full for the number of shares of
our common stock purchased upon such exercise (except in the case
of a cashless exercise as discussed below).
Cashless
Exercise. In the event that a registration statement covering
shares of our common stock underlying the warrants is not available
for the resale of such shares, the holder may, in its sole
discretion, exercise the warrant in whole or in part and, in lieu
of making the cash payment otherwise contemplated, elect instead to
receive upon such exercise the net number of shares of our common
stock determined according to the formula set forth in the warrant.
In no event will we be required to make any cash payments or net
cash settlement in lieu of issuing shares of our common stock
underlying the warrants.
Exercise
Price. The initial exercise price per share of our common stock
purchasable upon exercise of the warrants is $3.443. The exercise
price is subject to appropriate adjustment in the event of certain
stock dividends and distributions, stock splits stock combinations,
reclassifications, or similar events affecting our common stock and
also upon any distribution of assets, including cash, stock, or
other property to our stockholders.
Transferability.
Subject to applicable laws, the warrants may be transferred at the
option of the holders upon surrender of the warrants together with
the appropriate instruments of transfer.
Exchange
Listing. The warrants are listed on The Nasdaq Capital Market
under the symbol “VERBW.” We cannot provide assurances that a
trading market for the warrants will be maintained.
Fundamental
Transaction. If, at any time while the warrants are
outstanding, (a) we consolidate or merge with or into another
corporation and we are not the surviving corporation, (b) we sell,
lease, license, assign, transfer, convey, or otherwise dispose of
all or substantially all of our assets, (c) any purchase offer,
tender offer, or exchange offer (whether by us or another
individual or entity) is completed pursuant to which holders of
shares of our common stock are permitted to sell, tender, or
exchange their shares of our common stock for our other securities,
cash, or property and has been accepted by the holders of 50% or
more of the outstanding shares of our common stock, (d) we effect
any reclassification or recapitalization of shares of our common
stock or any compulsory share exchange pursuant to which the shares
of our common stock are converted into or exchanged for other
securities, cash, or property, or (e) we consummate a stock or
share purchase agreement or other business combination with another
person or entity whereby such other person or entity acquires more
than 50% of the outstanding shares of our common stock (each, a
“Common Stock Purchase Warrant Fundamental Transaction”), then upon
any subsequent exercise of the warrants, the holders thereof will
have the right to receive the same amount and kind of securities,
cash, or property as it would have been entitled to receive upon
the occurrence of such Common Stock Purchase Warrant Fundamental
Transaction if it had been immediately prior to such transaction,
the holder of the number of warrant shares then issuable upon
exercise of the warrant, and any additional consideration payable
as part of the transaction.
Rights
as a Stockholder. Except as otherwise provided in the warrants
or by virtue of such holder’s ownership of shares of our common
stock, the holder of the warrant does not have the rights or
privileges of a holder of our common stock, including any voting
rights, until the holder exercises the warrant.
2019
Warrants
On
August 14, 2019, we entered into a Stock Purchase Agreement (the
“SPA”) with certain purchasers named therein (the “Preferred
Purchasers”), pursuant to which we agreed to issue and sell an
aggregate of 6,000 shares of Series A Preferred Stock to the
Preferred Purchasers in exchange for gross proceeds of $5,030,000.
In connection with the offering, we granted warrants to the
Preferred Purchasers (the “2019 Warrants”) exercisable for up to
3,245,162 shares of common stock.
As of
December 31, 2021, there were 1,462,901 shares of our common stock
underlying the 2019 warrants, which have a per-share exercise price
of $1.10 per share.
Exercisability.
The warrants are exercisable from and after six months after the
date of issuance and at any time during the five-year period from
the date of issuance. The warrants will be exercisable, at the
option of each holder, in whole or in part, by delivering to us a
duly executed exercise notice accompanied by payment in full for
the number of shares of our common stock purchased upon such
exercise (except in the case of a cashless exercise as discussed
below).
Cashless
Exercise. In the event that a registration statement covering
shares of our common stock underlying the warrants is not available
for the resale of such shares, the holder may, in its sole
discretion, exercise the warrant in whole or in part and, in lieu
of making the cash payment otherwise contemplated, elect instead to
receive upon such exercise the net number of shares of our common
stock determined according to the formula set forth in the warrant.
In no event will we be required to make any cash payments or net
cash settlement in lieu of issuing shares of our common stock
underlying the warrants.
Exercise
Price. The initial exercise price per share of our common stock
purchasable upon exercise of the 2019 warrants was $1.88. The
exercise price is subject to adjustment in the event of certain
stock dividends and distributions, stock splits, stock
combinations, reclassifications, or similar events affecting our
common stock and also upon any distribution of assets, including
cash, stock, or other property to our stockholders. If we or any
subsidiary, at any time while the 2019 Warrants are outstanding,
sell or grant any option to purchase, or sell or grant any right to
reprice or otherwise dispose of or issue any common stock or common
stock equivalents at an effective price less than the exercise
price then in effect, then the exercise price shall be reduced to
the lower exercise price then in effect. The exercise price per
share was adjusted to $1.10 following the completion of a private
placement in February 2020 (see the section entitled “Outstanding
Warrants - 2020 Warrants”). If we, at any time while the 2019
Warrants are outstanding, issue rights, options, or warrants to all
holders of common stock entitling them to subscribe for or purchase
shares of common stock at a price per share less than the volume
weighted average price on the record date mentioned below, then the
exercise price shall be multiplied by a fraction, of which the
denominator shall be the number of shares of common stock
outstanding on the date of issuance of such rights, options, or
warrants plus the number of additional shares of common stock
offered for subscription or purchase, and of which the numerator
shall be the number of shares of common stock outstanding on the
date of issuance of such rights, options, or warrants plus the
number of shares that the aggregate offering price of the total
number of shares so offered (assuming receipt by us in full of all
consideration payable upon exercise of such rights, options or
warrants) would purchase at such volume weighted average price.
Such adjustment shall be made whenever such rights, options, or
warrants are issued, and shall become effective immediately after
the record date for the determination of stockholders entitled to
receive such rights, options, or warrants.
Transferability.
Subject to applicable laws, the warrants may be transferred at the
option of the holders upon surrender of the warrants together with
the appropriate instruments of transfer.
Exchange
Listing. The 2019 Warrants are not listed for trading on any
securities exchange and we do not intend to apply for
listing.
Fundamental
Transaction. If, at any time while the 2019 Warrants are
outstanding, (a) we consolidate or merge with or into another
corporation and we are not the surviving corporation, (b) we sell,
lease, license, assign, transfer, convey, or otherwise dispose of
all or substantially all of our assets, (c) any purchase offer,
tender offer, or exchange offer (whether by us or another
individual or entity) is completed pursuant to which holders of
shares of our common stock are permitted to sell, tender, or
exchange their shares of our common stock for our other securities,
cash, or property and has been accepted by the holders of 50% or
more of the outstanding shares of our common stock, (d) we effect
any reclassification or recapitalization of shares of our common
stock or any compulsory share exchange pursuant to which the shares
of our common stock are converted into or exchanged for other
securities, cash, or property, or (e) we consummate a stock or
share purchase agreement or other business combination with another
person or entity whereby such other person or entity acquires more
than 50% of the outstanding shares of our common stock, each, a
“2019 Warrant Fundamental Transaction,” then upon any subsequent
exercise of the warrants, the holders thereof will have the right
to receive the same amount and kind of securities, cash, or
property as it would have been entitled to receive upon the
occurrence of such transaction if it had been immediately prior to
such transaction, the holder of the number of warrant shares then
issuable upon exercise of the warrant, and any additional
consideration payable as part of the transaction. In the event of a
2019 Warrant Fundamental Transaction, we or any successor entity
shall, at the holder’s option, exercisable at any time concurrently
with, or within 30 days after, the consummation of the 2019 Warrant
Fundamental Transaction (or, if later, the date of the public
announcement of the applicable transaction), purchase the warrant
from the holder by paying to the holder an amount of cash equal to
the Black Scholes Value (as defined in the 2019 Warrant) of the
remaining unexercised portion of the warrant on the date of the
consummation of such transaction.
Rights
as a Stockholder. Except as otherwise provided in the warrants
or by virtue of such holder’s ownership of shares of our common
stock, the holder of the warrant does not have the rights or
privileges of a holder of our common stock, including any voting
rights, until the holder exercises the warrant.
2020
Warrants
In
connection with a private placement of our common stock in February
2020, the Preferred Purchasers who, as of February 7, 2020,
continued to own shares of our Series A Preferred Stock (the
“Continuing Holders”) issued pursuant to the SPA (a) waived their
respective rights to participate in the private placement, and (b)
declined to accept the price protection rights to which they
otherwise were entitled as holders of shares of our Series A
Preferred Stock. In connection with the waiver, we granted to the
Continuing Holders a five-year common stock purchase warrant (“2020
Warrants”), the terms of which are substantially similar to the
terms of our 2019 Warrants, provided that the 2020 Warrants had an
initial per-share exercise price of $1.55.
As of
December 31, 2021, there were 2,161,926 shares of our common stock
underlying the 2020 Warrants, which have a per-share exercise price
of $1.10 per share.
Outstanding
Equity Awards
As of
December 31, 2021, we had 5,404,223 shares of our common stock
underlying outstanding stock options, having a weighted-average
exercise price of approximately $1.72 per share,10,984,740 stock
purchase warrants having a weighted-average exercise price of $2.67
per share and 1,821,833 restricted stock awards having a
weighted-average grant date fair value of $1.41 issued under our
equity incentive plans.
Forum
Selection
Our
Bylaws provide that, unless we consent in writing to the selection
of an alternative forum, the state and federal courts in the State
of Nevada shall be the exclusive forum for any litigation relating
to our internal affairs, including, without limitation: (a) any
derivative action brought on our behalf, (b) any action asserting a
claim for breach of fiduciary duty to us or our stockholders by any
of our current or former officers, directors, employees or agents,
or (c) any action against us or any of our current or former
officers, directors, employees or agents arising pursuant to any
provision of the NRS, the articles of incorporation, or the bylaws.
For the avoidance of doubt, the exclusive forum provision described
above does not apply to any claims arising under the Securities Act
or Exchange Act. Section 27 of the Exchange Act creates exclusive
federal jurisdiction over all suits brought to enforce any duty or
liability created by the Exchange Act or the rules and regulations
thereunder, and Section 22 of the Securities Act creates concurrent
jurisdiction for federal and state courts over all suits brought to
enforce any duty or liability created by the Securities Act or the
rules and regulations thereunder.
Transfer
Agent and Registrar
The
transfer agent and registrar for our common stock is VStock
Transfer, LLC. The address is 18 Lafayette Place, Woodmere, New
York 11598. The telephone number is 855-9VSTOCK.
Listing
on The Nasdaq Capital Market
Shares
of our common stock are listed for trading on The Nasdaq Capital
Market under the symbol “VERB.” Certain of our common stock
purchase warrants are listed for trading on The Nasdaq Capital
Market under the symbol “VERBW” (see the section entitled
“Outstanding Warrants – Listed Common Stock Purchase Warrants”).
Our 2019 Warrants and 2020 Warrants are not listed for trading on
any securities exchange.
DESCRIPTION
OF DEBT SECURITIES
We
may offer and sell, from time to time, debt securities in one or
more series, as either senior or subordinated debt or as senior or
subordinated convertible debt. While the terms we have summarized
below will apply generally to any debt securities that we may offer
under this prospectus, we will describe the particular terms of any
debt securities that we may offer in more detail in the applicable
prospectus supplement. The terms of any debt securities offered
under a prospectus supplement may differ from the terms described
below. Unless the context requires otherwise, whenever we refer to
the indenture, we also are referring to any supplemental indentures
that specify the terms of a particular series of debt
securities.
We
will issue the debt securities under the indenture that we will
enter into with the trustee named in the indenture. The indenture
will be qualified under the Trust Indenture Act of 1939, as amended
(the “Trust Indenture Act”). We have filed the form of indenture as
an exhibit to the registration statement of which this prospectus
is a part, and supplemental indentures and forms of debt securities
containing the terms of the debt securities being offered will be
filed as exhibits to the registration statement of which this
prospectus is a part, or will be incorporated by reference from
reports that we file with the SEC.
The
following summary of material provisions of the debt securities and
the indenture is subject to, and qualified in its entirety by
reference to, all of the provisions of the indenture (or
supplemental indenture) applicable to a particular series of debt
securities. We urge you to read the applicable prospectus
supplements related to the debt securities that we may offer under
this prospectus, as well as the complete indenture (as supplemented
by any applicable supplemental indentures) that contains the terms
of the debt securities.
General
The
indenture does not limit the amount of debt securities that we may
issue. It provides that we may issue debt securities up to the
principal amount that we may authorize and may be in any currency
or currency unit that we may designate. Except for the limitations
on consolidation, merger and sale of all or substantially all of
our assets contained in the indenture, the terms of the indenture
do not contain any covenants or other provisions designed to give
holders of any debt securities protection against changes in our
operations, financial condition or transactions.
We
may issue the debt securities issued under the indenture as
“discount securities,” which means they may be sold at a discount
to their stated principal amount. These debt securities, as well as
other debt securities that are not issued at a discount, may be
issued with “original issue discount” (“OID”), for U.S. federal
income tax purposes because of interest payment and other
characteristics or terms of the debt securities. Material U.S.
federal income tax considerations applicable to debt securities
issued with OID will be described in more detail in any applicable
prospectus supplement.
Whenever
debt securities are to be issued and sold pursuant to this
prospectus, we will file a prospectus supplement relating to that
offer and sale which will specify (in each case to the extent
applicable):
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the
title of the series of debt securities; |
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any
limit upon the aggregate principal amount that may be
issued; |
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the
maturity date or dates; |
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the
form of the debt securities of the series; |
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the
applicability of any guarantees; |
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whether
or not the debt securities will be secured or unsecured, and the
terms of any secured debt; |
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whether
the debt securities rank as senior debt, senior subordinated debt,
subordinated debt or any combination thereof, and the terms of any
subordination; |
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if
the price at which such debt securities will be issued is a price
other than the principal amount thereof, the portion of the
principal amount thereof payable upon declaration of acceleration
of the maturity thereof, or if applicable, the portion of the
principal amount of such debt securities that is convertible into
another security or the method by which any such portion shall be
determined; |
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the
interest rate or rates, which may be fixed or variable, or the
method for determining the rate and the date interest will begin to
accrue, the dates interest will be payable and the regular record
dates for interest payment dates or the method for determining such
dates; |
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our
right, if any, to defer payment of interest and the maximum length
of any such deferral period; |
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if
applicable, the date or dates after which, or the period or periods
during which, and the price or prices at which, we may, at our
option, redeem the series of debt securities pursuant to any
optional or provisional redemption provisions and the terms of
those redemption provisions; |
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the
date or dates, if any, on which, and the price or prices at which
we are obligated, pursuant to any mandatory sinking fund or
analogous fund provisions or otherwise, to redeem, or at the
holder’s option to purchase, the series of debt securities and the
currency or currency unit in which the debt securities are
payable; |
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the
denominations in which we will issue the series of debt
securities; |
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whether
the debt securities of the series shall be issued in whole or in
part in the form of a global security or securities; the terms and
conditions, if any, upon which such global security or securities
may be exchanged in whole or in part for other individual
securities; and the depositary for such global security or
securities; |
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if
applicable, the provisions relating to conversion or exchange of
any debt securities of the series and the terms and conditions upon
which such debt securities will be so convertible or exchangeable,
including the conversion or exchange price, as applicable, or how
it will be calculated and may be adjusted, any mandatory or
optional conversion or exchange features, the applicable conversion
or exchange period and the manner of settlement for any conversion
or exchange; |
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if
other than the full principal amount thereof, the portion of the
principal amount of debt securities of the series which shall be
payable upon declaration of acceleration of the maturity
thereof; |
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additions
to or changes in the covenants applicable to the particular debt
securities being issued, including, among others, the
consolidation, merger or sale covenant; |
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additions
to or changes in the events of default with respect to the
securities and any change in the right of the trustee or the
holders to declare the principal, premium, if any, and interest, if
any, with respect to such securities to be due and
payable; |
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additions
to or changes in the provisions relating to satisfaction and
discharge of the indenture; |
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additions
to or changes in the provisions relating to the modification of the
indenture both with and without the consent of holders of debt
securities issued under the indenture; |
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whether
interest will be payable in cash or additional debt securities at
our or the holders’ option and the terms and conditions upon which
the election may be made; |
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any
restrictions on transfer, sale or assignment of the debt securities
of the series; |
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terms,
if applicable, related to the auction or remarketing of the debt
securities and any security for the obligations related to such
debt securities; |
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additions
to or changes in or deletions to the provisions relating to
covenant defeasance and legal defeasance; |
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terms
and conditions, if any, upon which we shall pay amounts in addition
to the stated interest, premium, if any and principal amounts of
the debt securities of the series to any securityholder that is not
a “United States person” for federal tax purposes; and |
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any
other specific terms, preferences, rights or limitations of, or
restrictions on, the debt securities, any other additions or
changes in the provisions of the indenture, and any terms that may
be required by us or advisable under applicable laws or
regulations. |
Conversion
or Exchange Rights
We
will set forth in the applicable prospectus supplement the terms on
which a series of debt securities may be convertible into or
exchangeable for our common stock, our preferred stock, our other
debt securities, or our warrants. We will include provisions as to
settlement upon conversion or exchange and whether conversion or
exchange is mandatory, at the option of the holder or at our
option. We may include provisions pursuant to which the number of
shares of our common stock, our preferred stock, our other debt
securities, or our warrants that the holders of the series of debt
securities receive upon conversion or exchange would be subject to
adjustment.
Consolidation,
Merger or Sale
Unless
we provide otherwise in the prospectus supplement applicable to a
particular series of debt securities, the indenture will not
contain any covenant that restricts our ability to merge or
consolidate, or sell, convey, transfer or otherwise dispose of all
or substantially all of our assets.
Events
of Default under the Indenture
Unless
we provide otherwise in the prospectus supplement applicable to a
particular series of debt securities, the following are events of
default under the indenture with respect to any series of debt
securities that we may issue:
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if we
fail to pay any installment of interest on any series of debt
securities, as and when the same shall become due and payable, and
such default continues for a period of 90 days; provided,
however, that a valid extension of an interest payment
period by us in accordance with the terms of any indenture
supplemental thereto shall not constitute a default in the payment
of interest for this purpose; |
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if we
fail to pay the principal of, or premium, if any, on any series of
debt securities as and when the same shall become due and payable
whether at maturity, upon redemption, by declaration or otherwise,
or in any payment required by any sinking or analogous fund
established with respect to such series; provided,
however, that a valid extension of the maturity of such debt
securities in accordance with the terms of any indenture
supplemental thereto shall not constitute a default in the payment
of principal or premium, if any; |
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if we
fail to observe or perform any other covenant or agreement
contained in the debt securities or the indenture, other than a
covenant specifically relating to another series of debt
securities, and our failure continues for 90 days after we receive
written notice of such failure, requiring the same to be remedied
and stating that such is a notice of default thereunder, from the
trustee or holders of at least 25% in aggregate principal amount of
the outstanding debt securities of the applicable series;
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if
specified events of bankruptcy, insolvency or reorganization
occur. |
If an
event of default with respect to debt securities of any series
occurs and is continuing, other than an event of default specified
in the last bullet point above, the trustee or the holders of at
least 25% in aggregate principal amount of the outstanding debt
securities of that series, by notice to us in writing, and to the
trustee if notice is given by such holders, may declare the unpaid
principal of, premium, if any, and accrued interest, if any, due
and payable immediately. If an event of default specified in the
last bullet point above occurs with respect to us, the principal
amount of and accrued interest, if any, of each issue of debt
securities then outstanding shall be due and payable without any
notice or other action on the part of the trustee or any
holder.
The
holders of a majority in principal amount of the outstanding debt
securities of an affected series may waive any default or event of
default with respect to the series and its consequences, except
defaults or events of default regarding payment of principal,
premium, if any, or interest, unless we have cured the default or
event of default in accordance with the indenture. Any waiver shall
cure the default or event of default.
Subject
to the terms of the indenture, if an event of default under an
indenture shall occur and be continuing, the trustee will be under
no obligation to exercise any of its rights or powers under such
indenture at the request or direction of any of the holders of the
applicable series of debt securities, unless such holders have
offered the trustee reasonable indemnity. The holders of a majority
in principal amount of the outstanding debt securities of any
series will have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the trustee,
or exercising any trust or power conferred on the trustee, with
respect to the debt securities of that series, provided
that:
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the
direction so given by the holder is not in conflict with any law or
the applicable indenture; and |
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subject
to its duties under the Trust Indenture Act, the trustee need not
take any action that might involve it in personal liability or
might be unduly prejudicial to the holders not involved in the
proceeding. |
A
holder of the debt securities of any series will have the right to
institute a proceeding under the indenture or to appoint a receiver
or trustee, or to seek other remedies only if:
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the
holder has given written notice to the trustee of a continuing
event of default with respect to that series; |
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the
holders of at least 25% in aggregate principal amount of the
outstanding debt securities of that series have made written
request, and such holders have offered to the trustee indemnity
satisfactory to it against the costs, expenses and liabilities to
be incurred by the trustee in compliance with the request;
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the
trustee does not institute the proceeding, and does not receive
from the holders of a majority in aggregate principal amount of the
outstanding debt securities of that series other conflicting
directions within 90 days after the notice, request and
offer. |
We
will periodically file statements with the trustee regarding our
compliance with specified covenants in the indenture.
Modification
of Indenture; Waiver
We
and the trustee may change an indenture without the consent of any
holders with respect to specific matters:
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to
cure any ambiguity, defect or inconsistency in the indenture or in
the debt securities of any series; |
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to
provide for uncertificated debt securities in addition to or in
place of certificated debt securities; |
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to
add to our covenants, restrictions, conditions or provisions such
new covenants, restrictions, conditions or provisions for the
benefit of the holders of all or any series of debt securities, to
make the occurrence, or the occurrence and the continuance, of a
default in any such additional covenants, restrictions, conditions
or provisions an event of default or to surrender any right or
power conferred upon us in the indenture; |
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to
add to, delete from or revise the conditions, limitations, and
restrictions on the authorized amount, terms, or purposes of issue,
authentication and delivery of debt securities, as set forth in the
indenture; |
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to
make any change that does not adversely affect the interests of any
holder of debt securities of any series in any material
respect; |
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to
provide for the issuance of and establish the form and terms and
conditions of the debt securities of any series as provided above
in the section entitled “Description of Debt
Securities—General” to establish the form of any certifications
required to be furnished pursuant to the terms of the indenture or
any series of debt securities, or to add to the rights of the
holders of any series of debt securities; |
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to
evidence and provide for the acceptance of appointment under any
indenture by a successor trustee; or |
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to
comply with any requirements of the SEC in connection with the
qualification of any indenture under the Trust Indenture
Act. |
In
addition, under the indenture, the rights of holders of a series of
debt securities may be changed by us and the trustee with the
written consent of the holders of at least a majority in aggregate
principal amount of the outstanding debt securities of each series
that is affected. However, unless we provide otherwise in the
prospectus supplement applicable to a particular series of debt
securities, we and the trustee may make the following changes only
with the consent of each holder of any outstanding debt securities
affected:
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extending
the fixed maturity of any debt securities of any
series; |
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reducing
the principal amount, reducing the rate of or extending the time of
payment of interest, or reducing any premium payable upon the
redemption of any series of any debt securities; or |
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reducing
the percentage of debt securities, the holders of which are
required to consent to any amendment, supplement, modification or
waiver. |
Discharge
The
indenture provides that we can elect to be discharged from our
obligations with respect to one or more series of debt securities,
except for specified obligations, including obligations
to:
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provide
for payment; |
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register
the transfer or exchange of debt securities of the
series; |
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replace
stolen, lost or mutilated debt securities of the
series; |
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pay
principal of and premium and interest on any debt securities of the
series; |
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maintain
an office or agency; |
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maintain
paying agencies; |
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hold
monies for payment in trust; |
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recover
excess money held by the trustee; |
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compensate
and indemnify the trustee; and |
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appoint
any successor trustee. |
In
order to exercise our rights to be discharged, we must deposit with
the trustee money or government obligations sufficient to pay all
the principal of, any premium, if any, and interest on, the debt
securities of the series on the dates payments are due.
Form,
Exchange and Transfer
We
will issue the debt securities of each series only in fully
registered form without coupons and, unless we provide otherwise in
the applicable prospectus supplement, in denominations of $1,000
and any integral multiple thereof. The indenture provides that we
may issue debt securities of a series in temporary or permanent
global form and as book-entry securities that will be deposited
with, or on behalf of, The Depository Trust Company (“DTC”), or
another depositary named by us and identified in the applicable
prospectus supplement with respect to that series. To the extent
the debt securities of a series are issued in global form and as
book-entry, a description of terms relating to any book entry
securities will be set forth in the applicable prospectus
supplement.
At
the option of the holder, subject to the terms of the indenture and
the limitations applicable to global securities described in the
applicable prospectus supplement, the holder of the debt securities
of any series can exchange the debt securities for other debt
securities of the same series, in any authorized denomination and
of like tenor and aggregate principal amount.
Subject
to the terms of the indenture and the limitations applicable to
global securities set forth in the applicable prospectus
supplement, holders of the debt securities may present the debt
securities for exchange or for registration of transfer, duly
endorsed or with the form of transfer endorsed thereon duly
executed if so required by us or the security registrar, at the
office of the security registrar or at the office of any transfer
agent designated by us for this purpose. Unless otherwise provided
in the debt securities that the holder presents for transfer or
exchange, we will impose no service charge for any registration of
transfer or exchange, but we may require payment of any taxes or
other governmental charges.
We
will name in the applicable prospectus supplement the security
registrar, and any transfer agent in addition to the security
registrar, that we initially designate for any debt securities. We
may at any time designate additional transfer agents or rescind the
designation of any transfer agent or approve a change in the office
through which any transfer agent acts, except that we will be
required to maintain a transfer agent in each place of payment for
the debt securities of each series.
If we
elect to redeem the debt securities of any series, we will not be
required to:
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issue,
register the transfer of, or exchange any debt securities of that
series during a period beginning at the opening of business 15 days
before the day of mailing of a notice of redemption of any debt
securities that may be selected for redemption and ending at the
close of business on the day of the mailing; or |
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register
the transfer of or exchange any debt securities so selected for
redemption, in whole or in part, except the unredeemed portion of
any debt securities we are redeeming in part. |
Information
Concerning the Trustee
The
trustee, other than during the occurrence and continuance of an
event of default under an indenture, undertakes to perform only
those duties as are specifically set forth in the applicable
indenture. Upon an event of default under an indenture, the trustee
must use the same degree of care as a prudent person would exercise
or use in the conduct of his or her own affairs. Subject to this
provision, the trustee is under no obligation to exercise any of
the powers given it by the indenture at the request of any holder
of debt securities unless it is offered reasonable security and
indemnity against the costs, expenses and liabilities that it might
incur.
Payment
and Paying Agents
Unless
we otherwise indicate in the applicable prospectus supplement, we
will make payment of the interest on any debt securities on any
interest payment date to the person in whose name the debt
securities, or one or more predecessor securities, are registered
at the close of business on the regular record date for the
interest.
We
will pay the principal of and any premium and interest on the debt
securities of a particular series at the office of the paying
agents designated by us, except that unless we otherwise indicate
in the applicable prospectus supplement, we will make interest
payments by check that we will mail to the holder or by wire
transfer to certain holders. Unless we otherwise indicate in the
applicable prospectus supplement, we will designate the corporate
trust office of the trustee as our sole paying agent for payments
with respect to debt securities of each series. We will name in the
applicable prospectus supplement any other paying agents that we
initially designate for the debt securities of a particular series.
We will maintain a paying agent in each place of payment for the
debt securities of a particular series.
All
money we pay to a paying agent or the trustee for the payment of
the principal of or any premium or interest on any debt securities
that remains unclaimed at the end of two years after such
principal, premium or interest has become due and payable will be
repaid to us, and the holder of the debt security thereafter may
look only to us for payment thereof.
Governing
Law
The
indenture and the debt securities will be governed by and construed
in accordance with the internal laws of the State of New York,
except to the extent that the Trust Indenture Act of 1939 is
applicable.
DESCRIPTION OF
WARRANTS
We
may offer and sell, from time to time, warrants for the purchase of
shares of our common stock, shares of our preferred stock, debt
securities and/or units. We may issue warrants independently or
together with common stock, preferred stock and/or debt securities,
and the warrants may be attached to or separate from those
securities. If we issue warrants, they will be evidenced by warrant
agreements or warrant certificates issued under one or more warrant
agreements, which will be contracts between us and the holders of
the warrants or an agent for the holders of the warrants. The forms
of warrant agreements or warrant certificates, as applicable,
relating to the warrants will be filed as exhibits to the
registration statement of which this prospectus is a part, or will
be incorporated by reference from reports that we file with the
SEC.
The
following summary of material provisions of the warrants and
warrant agreements are subject to, and qualified in their entirety
by reference to, all of the provisions of the warrant agreement and
warrant certificate applicable to a particular series of warrants.
We urge you to read the applicable prospectus supplement related to
the warrants that we may offer under this prospectus, as well as
the complete warrant agreements and warrant certificates that
contain the terms of the warrants.
Whenever
warrants are to be issued and sold pursuant to this prospectus, we
will file a prospectus supplement relating to that offer and sale
which will specify (in each case as applicable):
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the
number of shares of common stock or preferred stock purchasable
upon the exercise of warrants to purchase such shares, and the
price at which such number of shares may be purchased upon such
exercise; |
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the
designation, stated value and terms (including, without limitation,
liquidation, dividend, conversion and voting rights) of the series
of preferred stock purchasable upon exercise of warrants to
purchase preferred stock; |
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the
principal amount of debt securities that may be purchased upon
exercise of a debt warrant and the exercise price for the
warrants; |
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the
date, if any, on and after which the warrants and the related
common stock, preferred stock, debt securities and/or units will be
separately transferable; |
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the
terms of any rights to redeem or call the warrants; |
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the
date on which the right to exercise the warrants will commence and
the date on which the right will expire; and |
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any
additional terms of the warrants, including terms, procedures and
limitations relating to the exchange, exercise and settlement of
the warrants. |
Each
warrant will entitle its holder to purchase the number of shares of
common stock or preferred stock, the principal amount of debt
securities, and/or the number of units at the exercise price set
forth in (or calculable as set forth in) the applicable prospectus
supplement. Unless we otherwise specify in the applicable
prospectus supplement, holders of the warrants may exercise the
warrants at any time up to the specified time on the expiration
date that we set forth in the applicable prospectus supplement.
After the close of business on the expiration date, unexercised
warrants will become void.
A
holder of warrant certificates may exchange them for new warrant
certificates of different denominations, present them for
registration of transfer, and exercise them as indicated in the
applicable prospectus supplement. Until any warrants to purchase
common stock or preferred stock are exercised, the holders of the
warrants will not have any rights of holders of the underlying
common stock or preferred stock, including any voting rights or any
rights to receive dividends or payments upon any liquidation,
dissolution or winding up on the common stock or preferred stock,
if any. Until any warrants to purchase debt securities are
exercised, the holder of the warrants will not have any rights of
holders of the debt securities that can be purchased upon exercise,
including any rights to receive payments of principal, premium or
interest on the underlying debt securities, or to enforce covenants
in the applicable indenture.
DESCRIPTION OF UNITS
We
may offer and sell, from time to time, units comprised of two or
more of the other securities described in this prospectus in any
combination, which may or may not be separable from one another. If
we issue units, they will be evidenced by unit agreements or unit
certificates issued under one or more unit agreements, which will
be contracts between us and the holders of the units or an agent
for the holders of the units. The unit agreement under which a unit
is issued may provide that the securities included in the unit may
not be held or transferred separately, at any time or at any time
before a specified date. The forms of unit agreements or unit
certificates, as applicable, relating to the units will be filed as
exhibits to the registration statement of which this prospectus is
a part, or will be incorporated by reference from reports that we
file with the SEC.
The
following summary of material provisions of the units and unit
agreements are subject to, and qualified in their entirety by
reference to, all of the provisions of the unit agreements
applicable to the units. We urge you to read the applicable
prospectus supplement, as well as the complete unit agreements that
contain the terms of the units.
Whenever
units are to be issued and sold pursuant to this prospectus, we
will file a prospectus supplement relating to that offer and sale
which will specify (in each case as applicable):
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the
title of the series of units; |
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identification
and description of the separate securities comprising the
units; |
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the
price or prices at which the units will be issued; |
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the
date, if any, on and after which the securities comprising the
units will be separately transferable; and |
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any
other terms of the units and their securities. |
Each
unit will be issued so that the holder of the unit is also the
holder of each security included in the unit. Thus, the holder of a
unit will have the rights and obligations of a holder of each
included security.
PLAN OF DISTRIBUTION
We
may sell our securities from time to time in any manner permitted
by the Securities Act, including any one or more of the following
ways:
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through
agents; |
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to or
through underwriters; |
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to or
through broker-dealers (acting as agent or principal); |
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in
“at the market offerings” within the meaning of Rule 415(a)(4) of
the Securities Act, to or through a market maker or into an
existing trading market, on an exchange or otherwise;
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directly
to purchasers, through a specific bidding or auction process or
otherwise. |
The
securities may be sold at a fixed price or prices, which may be
changed, at market prices prevailing at the time of sale, at prices
relating to the prevailing market prices or at negotiated
prices.
Offers
to purchase offered securities may be solicited by agents
designated by us from time to time. Any agent involved in the offer
or sale of the offered securities in respect of which this
prospectus is delivered will be named, and any commissions payable
by us will be set forth, in the applicable prospectus supplement.
Unless otherwise set forth in the applicable prospectus supplement,
any agent will be acting on a reasonable best efforts basis for the
period of its appointment. Any agent may be deemed to be an
underwriter, as that term is defined in the Securities Act, of the
offered securities so offered and sold.
We
will set forth in a prospectus supplement the terms of the offering
of our securities, including:
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the
name or names of any agents, underwriters or dealers; |
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the
type of securities being offered; |
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the
purchase price of our securities being offered and the net proceeds
we expect to receive from the sale; |
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any
over-allotment options under which underwriters may purchase
additional securities from us; |
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any
agency fees or underwriting discounts and commissions and other
items constituting agents’ or underwriters’
compensation; |
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the
public offering price; |
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any
discounts or concessions allowed or reallowed or paid to dealers;
and |
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any
securities exchanges on which such securities may be
listed. |
If
offered securities are sold to the public by means of an
underwritten offering, either through underwriting syndicates
represented by managing underwriters or directly by the managing
underwriters, we will execute an underwriting agreement with an
underwriter or underwriters, and the names of the specific managing
underwriter or underwriters, as well as any other underwriters,
will be set forth in the applicable prospectus supplement. In
addition, the terms of the transaction, including commissions,
discounts and any other compensation of the underwriters and
dealers, if any, will be set forth in the applicable prospectus
supplement, which prospectus supplement will be used by the
underwriters to make resales of the offered securities. If
underwriters are utilized in the sale of the offered securities,
the offered securities will be acquired by the underwriters for
their own account and may be resold from time to time in one or
more transactions, including:
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transactions
on the Nasdaq Capital Market or any other trading market where the
securities may be traded; |
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in
the over-the-counter market; |
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in
negotiated transactions; or |
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under
delayed delivery contracts or other contractual
commitments. |
We
may grant to the underwriters options to purchase additional
offered securities to cover over-allotments, if any, at the public
offering price with additional underwriting discounts or
commissions, as may be set forth in the applicable prospectus
supplement. If we grant any over-allotment option, the terms of the
over-allotment option will be set forth in the applicable
prospectus supplement.
We
may authorize agents or underwriters to solicit offers by certain
types of institutional investors to purchase securities from us at
the public offering price set forth in the prospectus supplement
pursuant to delayed delivery contracts providing for payment and
delivery on a specified date in the future. We will describe the
conditions to these contracts and the commissions we must pay for
solicitation of these contracts in the prospectus
supplement.
We
may indemnify agents, underwriters and dealers against specified
liabilities, including liabilities incurred under the Securities
Act, or to contribution by us to payments they may be required to
make in respect of such liabilities. Agents, underwriters or
dealers, or their respective affiliates, may be customers of,
engage in transactions with or perform services for us or our
respective affiliates, in the ordinary course of
business.
Unless
otherwise specified in the applicable prospectus supplement, each
class or series of securities will be a new issue with no
established trading market, other than our common stock, which is
traded on the Nasdaq Capital Market. We may elect to list any other
class or series of securities on any exchange and, in the case of
our common stock, on any additional exchange. However, unless
otherwise specified in the applicable prospectus supplement, we
will not be obligated to do so. It is possible that one or more
underwriters may make a market in a class or series of securities,
but the underwriters will not be obligated to do so and may
discontinue any market making at any time without notice. We cannot
give any assurance as to the liquidity of the trading market for
any of the offered securities.
Any
underwriter may engage in over-allotment, stabilizing transactions,
short-covering transactions and penalty bids in accordance with
Regulation M under the Exchange Act. Over-allotment involves sales
in excess of the offering size, which create a short position.
Stabilizing transactions permit bids to purchase the underlying
security so long as the stabilizing bids do not exceed a specified
maximum price. Syndicate-covering or other short-covering
transactions involve purchases of the securities, either through
exercise of the over-allotment option or in the open market after
the distribution is completed, to cover short positions. Penalty
bids permit the underwriters to reclaim a selling concession from a
dealer when the securities originally sold by the dealer are
purchased in a stabilizing or covering transaction to cover short
positions. Those activities may cause the price of the securities
to be higher than it would otherwise be. If commenced, the
underwriters may discontinue any of the activities at any
time.
To
comply with the securities laws of certain states, if applicable,
the securities offered by this prospectus will be offered and sold
in those states only through registered or licensed brokers or
dealers.
In
compliance with guidelines of the Financial Industry Regulatory
Authority (“FINRA”), the maximum consideration or discount to be
received by any FINRA member or independent broker dealer may not
exceed 8% of the aggregate amount of the securities offered
pursuant to this prospectus and any applicable prospectus
supplement.
LEGAL MATTERS
Certain
legal matters, including the validity of the issuance of the
securities offered by this prospectus, will be passed upon for us
by Stradling Yocca Carlson & Rauth, P.C., Newport Beach,
California.
EXPERTS
The
consolidated financial statements of Verb Technology Company, Inc.
as of December 31, 2021 and 2020, and for the years then ended
appearing in Verb Technology Company, Inc.’s From 10-K for the
fiscal year ended December 31, 2021, have been audited by Weinberg
& Company, P.A., independent registered public accounting firm,
as set forth in their report thereon, included therein, and
incorporated herein by reference. Such financial statements are
incorporated by reference herein in reliance upon such report of
Weinberg & Company, P.A. pertaining to such financial
statements given on the authority of such firm as experts in
accounting and auditing.
INCORPORATION OF CERTAIN DOCUMENTS
BY REFERENCE
The
SEC allows us to “incorporate” into this prospectus information
that we file with the SEC in other documents. This means that we
can disclose important information to you by referring to other
documents that contain that information. Any information that we
incorporate by reference into this prospectus is considered part of
this prospectus.
Information
contained in this prospectus and information that we file with the
SEC in the future and incorporate by reference in this prospectus
automatically modifies and supersedes previously filed information,
including information in previously filed documents or reports that
have been incorporated by reference in this prospectus, to the
extent the new information differs from or is inconsistent with the
old information. Any statement so modified will be deemed to
constitute a part of this prospectus only as so modified, and any
statement so superseded will be deemed not to constitute a part of
this prospectus. For additional information, refer to the section
entitled “About this Prospectus.”
We
incorporate by reference, as of their respective dates of filing,
the documents listed below that we have filed with the SEC and any
future documents that we file with the SEC pursuant to Sections
13(a), 13(c), 14 or 15(d) of the Exchange Act, including any
documents filed after the date on which the registration statement
of which this prospectus is a part is initially filed until the
offering of the securities covered by this prospectus has been
completed, other than, in each case, documents or information
deemed to have been “furnished” and not “filed” in accordance with
SEC rules:
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our
Annual Report on Form 10-K for the fiscal year ended December 31,
2021 as filed with the SEC on March 31, 2022 (our “Annual
Report”); |
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our
Current Reports on Form 8-K as filed with the SEC on each of
January 13, 2022 and January 24, 2022; and |
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the
description of our securities contained in Exhibit 4.17 to our
Annual Report on Form 10-K for the fiscal year ended December 31,
2019, filed with the SEC on May 14, 2020, including any amendment
or report filed for the purpose of updating such
description. |
We
will provide to each person, including any beneficial owner to whom
this prospectus is delivered, a copy of any document that is
incorporated by reference in this prospectus. You may
obtain copies of the documents incorporated by reference in this
prospectus from us free of charge by requesting them in writing or
by telephone at the following address:
Verb
Technology Company, Inc.
782 South Auto Mall Drive
American Fork, Utah 84003
Attn: Investor Relations
Telephone: (855) 250-2300
Exhibits
to the documents will not be sent, however, unless those exhibits
have specifically been incorporated by reference in this
prospectus.
You
should rely only on the information contained in this prospectus,
in any accompanying prospectus supplement, or in any document
incorporated by reference herein or therein. We have not authorized
anyone to provide you with any different information. We take no
responsibility for, and can provide no assurance as to the
reliability of, any other information that others may provide to
you. The information contained in this prospectus, in any
applicable prospectus supplement, and in the documents incorporated
by reference herein or therein, is accurate only as of the date
such information is presented. Our business, financial condition,
results of operations and future prospects may have changed since
those respective dates.
WHERE YOU CAN FIND MORE
INFORMATION
We
file annual, quarterly and current reports, proxy statements, and
other information with the SEC. The SEC maintains a website that
contains these reports, proxy and information statements, and other
information we file electronically with the SEC. Our filings are
available free of charge at the SEC’s website at
www.sec.gov.
This
prospectus is part of a registration statement that we filed with
the SEC. As permitted by SEC rules, this prospectus and any
accompanying prospectus supplement that we may file, which form a
part of the registration statement, do not contain all of the
information that is included in the registration statement. The
registration statement contains more information regarding us and
the securities offered by us, including certain exhibits. You can
obtain a copy of the registration statement from the SEC at the
website referenced above.

36,0510,000
Shares
of Common Stock
PROSPECTUS
SUPPLEMENT
Sole
Book-Running Manager
Aegis
Capital Corp.
January 24,2023
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