Veritone Secures $20.3 Million in Funding to Boost AI Platform Development

Veritone : Announces Pricing of $20.3 Million Registered Direct Offering Form 8 K

Veritone Announces Pricing of $20.3 Million Registered Direct Offering DENVER - (BUSINESS WIRE) - January 2, 2025 - Veritone, Inc. (NASDAQ: VERI) ("Veritone" or the "Company"), a leader in building human-centered enterprise AI solutions, today announced that it has entered into a definitive agreement providing for the purchase and sale of an aggregate of 8,023,716 shares of common stock (or pre-funded warrants in lieu thereof) at a purchase price of $2.53 per share (or $2.52 for each pre-funded warrant) in a registered direct offering to Esousa Group Holdings, LLC, a New York based family office. The pre-funded warrants have an exercise price of $0.01, are immediately exercisable, subject to certain limitations, and will have a term of five years from the original issue date. The closing of the offering is expected to occur on or about January 3, 2025, subject to the satisfaction of customary closing conditions. The aggregate gross proceeds to the Company from the offering are expected to be approximately $20.3 million, before deducting offering expenses payable by the Company. The Company intends to use the net proceeds from this offering, together with its existing cash and cash equivalents, for working capital and general corporate purposes including, but not limited to, capital expenditures, debt service, repayment of indebtedness and other business opportunities and to further develop and market its AI platform and applications. The securities described above are being offered and sold by the Company in a registered direct offering pursuant to a "shelf" registration statement on Form S-3 (File No. 333-280148) that was originally filed with the Securities and Exchange Commission (the "SEC") on June 12, 2024, and that became effective on June 21, 2024. The offering of the securities in the registered direct offering is being made only by means of a base prospectus and prospectus supplement that forms a part of the effective registration statement. A final prospectus supplement and the accompanying base prospectus relating to the registered direct offering will be filed with the SEC and will be available on the SEC's website at www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying base prospectus, when available, may also be obtained, when available, from the Company at 1615 Platte Street, 2 Floor, Denver, Colorado, by phone at (888) 507-1737 or e-mail at [email protected]. This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction. About Veritone Veritone (NASDAQ: VERI) builds human-centered enterprise AI solutions. Serving customers in the media, entertainment, public sector and talent acquisition industries, Veritone's software and services empower individuals at the world's largest and most recognizable brands to run more efficiently, accelerate decision making and increase profitability. Veritone's leading enterprise AI platform, aiWARE, orchestrates an ever-growing ecosystem of machine learning models, transforming data sources into actionable intelligence. By blending human expertise with AI technology, Veritone advances human potential to help organizations solve problems and achieve more than ever before, enhancing lives everywhere. To learn more, visit Veritone.com. Safe Harbor Statement This press release contains forward-looking statements, including without limitation, statements by Veritone relating to Veritone's expectations regarding the completion and timing of the offering, the satisfaction of customary closing conditions related to the offering the proceeds that Veritone expects to receive from the offering and the intended use of proceeds from the offering. In addition, words such as "may," "will," "expect," "believe," "anticipate," "intend," "plan," "outlook," "should," "could," "estimate,"

Veritone announces $20.3 million stock sale to Esousa Grou By Investing.com

DENVER - Veritone, Inc. (NASDAQ: VERI), known for its enterprise AI solutions and currently valued at $125.66 million in market capitalization, has entered into a definitive agreement with Esousa Group Holdings, LLC for a registered direct offering. According to InvestingPro analysis, the company has been operating with a significant debt burden while maintaining impressive gross profit margins of nearly 79%. The deal involves the sale of 8,023,716 shares of common stock, or pre-funded warrants as an alternative, priced at $2.53 per share and $2.52 per pre-funded warrant, respectively. The pre-funded warrants, exercisable immediately with certain limitations, are priced at $0.01 and have a five-year term from the issue date. The offering is expected to close on or about January 3, 2025, contingent on standard closing conditions. The transaction is projected to yield gross proceeds of approximately $20.3 million for Veritone, prior to the deduction of offering expenses. The funding comes at a crucial time, as InvestingPro data shows the company's current debt stands at $142.7 million, with short-term obligations exceeding liquid assets (current ratio of 0.66). The company plans to allocate the net proceeds towards its working capital and general corporate purposes. This includes capital expenditures, debt service, repayment of existing debts, and other business opportunities. Additionally, funds will be used to enhance and market Veritone's AI platform and applications. The offering is conducted in accordance with a shelf registration statement filed with the Securities and Exchange Commission (SEC) on June 12, 2024, which became effective on June 21, 2024. The securities in this offering are available only through a base prospectus and prospectus supplement forming part of the registration statement. Upon closing, a final prospectus supplement and the accompanying base prospectus will be accessible on the SEC's website. Veritone specializes in AI solutions that cater to various sectors, including media, entertainment, public sector, and talent acquisition. Its AI platform, aiWARE™, is designed to transform data into actionable intelligence, enhancing efficiency and decision-making capabilities for its clients. InvestingPro subscribers can access 11 additional key insights about Veritone's financial health, growth prospects, and market position through the comprehensive Pro Research Report, helping investors make more informed decisions about this volatile tech stock. The information reported here is based on a press release statement. Veritone has made forward-looking statements regarding the offering's completion, timing, expected proceeds, and the intended use of these proceeds. These statements are subject to risks and uncertainties, and actual results may differ from those projected. Veritone does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date of the press release. In other recent news, Veritone Inc (NASDAQ:VERI). has reported a series of developments. The company's Q3 financial results showed a decrease in year-over-year revenue to $22 million. However, a significant development was the sale of its media agency, Veritone One, for a potential $104 million, a strategic move aimed at enhancing the company's focus on AI operations. The company also revised its fiscal 2024 guidance to a revenue range of $92.5 million - $93.5 million, with a non-GAAP loss projected between $37.5 million and $36.5 million. Veritone has expanded its global talent acquisition offerings by launching a programmatic job advertising service in Australia. This AI-driven platform aims to optimize the recruitment process. The company also made its Artificial Intelligence Solutions Group's (AISG) offerings available on the AWS Marketplace, a move that enables easier access and deployment of Veritone's AI solutions within the AWS cloud environment. These recent developments are part of Veritone's mission to provide transformative AI solutions tailored to specific business challenges. According to analysts at InvestingPro, despite facing challenges with cash burn and profitability, Veritone anticipates cash flow profitability by fiscal 2026.