Veritone Inc. (NASDAQ:VERI) stock plunged about 37% Thursday after the artificial intelligence software company announced a $15 million registered direct offering.
The micro-cap company entered into a definitive agreement to sell 20 million shares of common stock. The deal is expected to close on or about Oct. 2, subject to customary closing conditions.
Veritone Raises $15 Million
Veritone expects gross proceeds of about $15 million before offering expenses.
The company plans to use the net proceeds, along with existing cash and cash equivalents, to repay or restructure a portion of its convertible debt. It will also use the funds for working capital and general corporate purposes.
Liquidity Pressure Remains In Focus
Veritone had $12.4 million in cash and cash equivalents as of June 30 and $45.5 million of outstanding 1.75% convertible senior notes due in 2026.
The company has also been cutting costs. Its first restructuring phase delivered $11.3 million in annualized savings, while additional reductions of $3.5 million to $8.5 million are targeted by year-end.
Veritone reported a second-quarter operating loss of $22.1 million, while total new bookings fell 6.8% to $13.9 million.
See More: Top Value Stocks
Heavy Volume Hits Veritone Stock
Veritone shares were trading around 75 cents Thursday, down about 37%.
The company had a market capitalization of about $119.5 million based on the previous close, putting it firmly in micro-cap territory.
Trading volume surged to about 20.2 million shares during the session. That compares with a 100-day average volume of roughly 3.25 million shares.
Equity offerings can pressure a stock because issuing additional shares increases the number of shares outstanding and can dilute existing shareholders’ ownership stakes.
The stock has fallen about 84% so far in 2026.
Veritone Price Action
VERI Price Action: Veritone shares were down 36.97% at $0.7492 at the time of publication on Thursday, according to Benzinga Pro data.
Image via Shutterstock
Login to comment