NEW YORK, NY / ACCESSWIRE / February 5, 2020 / Zedge, Inc. (NYSE American:ZDGE), today announced the closing of its registered direct offering of 1,734,459 shares of its Class B common stock for gross proceeds of $2.25 million. Zedge sold 1,657,813 shares at a purchase price of $1.28 per share, and an additional 76,646 shares at a purchase price of $1.67 per share. Zedge intends to use the net proceeds from the offering for working capital and other general corporate purposes.
" I'm pleased to announce the closing of a modest capital raise accomplished via a registered direct offering. The offering was subscribed to by existing shareholders and new institutional and accredited investors," said Jonathan Reich, CFO and COO. "Other than insiders who purchased at $1.67 per share, the closing price on February 3, 2020, all other investors purchased our equity at $1.28 per share which represented a 20% discount to the 10 Day Volume Weighted Average Price (VWAP) through January 31, 2020. Our plan is to use this for working capital needs and to accelerate growth initiatives as the need arises. We look forward to sharing additional updates with all of our shareholders at our upcoming 2nd quarter earnings call."
Forward Looking Statements
All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate," "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, we assume no obligation to update any forward-looking statements.
Zedge offers a state-of-the-art digital publishing platform that powers our consumer-facing app availing users with a host of digital content - wallpapers, video wallpapers, ringtones, and stickers. We are evolving by developing new apps run on top of our publishing platform and generally focus on the entertainment vertical. Our creators are amateur and professional artists as well as new and major brands who can easily launch a virtual storefront in Zedge where they can market and sell their content to our user base. Our app has been downloaded more than 400 million times, has close to 30 million monthly active users and has consistently averaged in the ‘Top 60' most popular free apps in Google Play in the US.
SOURCE: Zedge, Inc.