Leading mobile engagement platform SITO Mobile Ltd. (NASDAQ: SITO) on Friday, September 16, announced a $10 million underwritten public offering. The offering is expected to close on Tuesday, September 21. The underwritten public offering consists of 2,666,667 shares of common stock at an offering price of $3.75 each.
SITO Mobile also made available a 30-day option that would allow underwriters to purchase up to 400,000 additional shares at the same price. The decision is designed to cover overallotments that result from the underwritten public offering. The New Jersey company expects gross proceeds of $10 million and approximately $9.3 million after the underwriting discount.
According to a press release (http://nnw.fm/Xs99I) issued by the mobile location-based advertising provider, the proceeds from the public offering will be used primarily for general corporate purposes, such as a debt paydown and expansion of its products and sales team, as well as for general working capital purposes. The company may also use part of the proceeds to invest in or acquire additional businesses or products, although no agreements or commitments to any specific acquisitions have been made public thus far.
The book-running manager for the SITO Mobile public offering is Cowen and Company, LLC, with Maxim Group LLC and Craig-Hallum Capital Group LLC acting as co-managers. A base prospectus describing the terms of the public offering has already been submitted to the Securities and Exchange Commission and is available for viewing either on the SEC website or via Cowen and Company, LLC, when available.
The $10 million public offering comes a few weeks after SITO Mobile released its Q2 financial data, reporting overall higher revenue and profit than in Q2 2015. The company’s total revenue was $9.9 million, which marked a 168% increase year-over-year, while its gross profit was $5.4 million, compared to $1.8 million in Q2 2015.
With the declared goal of enabling brands to increase awareness, customer loyalty and sales, SITO Mobile focuses of delivering targeted mobile advertising campaigns based on location, customer response and in-store traffic. It currently operates in the United States and Canada.
For more information, visit www.SITOMobile.com
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