Banzai issues over 1 million shares to Alco Investment

Published 22/04/2025, 13:38
Banzai issues over 1 million shares to Alco Investment

SEATTLE - Banzai International, Inc. (NASDAQ: BNZI), a prominent marketing technology firm, announced the issuance of 1,048,920 shares of common stock to Alco Investment Company following the exercise of Pre-Funded Warrants on Monday. The transaction stems from a private placement completed on September 20, 2024, where Alco initially acquired 282,420 shares of Class A Common Stock at $3.89 per share, along with warrants to purchase additional shares. According to InvestingPro data, BNZI’s stock has experienced significant volatility, currently trading at $0.99, down about 95% over the past year and nearly 35% year-to-date.

The Pre-Funded Warrants were exercised at a nominal price of $0.0001 per share, with the original purchase price of the warrants set at $3.89. This cashless net exercise has increased the total number of Class A common shares outstanding to 14,470,727 as of April 21, 2025. As a result of the exercise, Alco now holds a 9.5% ownership stake in Banzai’s Class A Common Stock. InvestingPro analysis shows the company faces financial challenges, with a current market capitalization of approximately $15 million and a weak financial health score. The company’s current ratio of 0.09 indicates short-term obligations exceed liquid assets.

Joe Davy, Founder and CEO of Banzai, expressed that the warrant exercise by Alco signifies a robust vote of confidence from a key investor and insider. Davy emphasized the company’s commitment to strengthening its capital structure and acknowledged the support from stakeholders who believe in Banzai’s strategic direction for achieving long-term success.

Banzai provides AI-enabled marketing and sales solutions to businesses of various sizes, with a clientele that includes names like Autodesk, Dell Technologies, and Thermo Fisher Scientific. The company is focused on assisting customers to target, engage, and measure the effectiveness of their marketing efforts more efficiently.

This news is based on a press release statement and does not include speculative forward-looking statements. The information provided should be verified independently and does not constitute any endorsement of Banzai’s claims.

In other recent news, Banzai International Inc. reported a significant 267% annual increase in total pro forma revenue for 2024, reaching $16.7 million. The company also improved its adjusted EBITDA, reducing its loss from $11.9 million in 2023 to $6.5 million in 2024. Banzai International expanded its customer base from 27,000 to 90,000, with strategic acquisitions like Vidello and OpenReal contributing to this growth. Looking forward, Banzai projects nearly $20 million in pro forma revenue for 2025, aiming for a positive net income and a gross margin exceeding 80%. The company is also working towards closing the acquisition of Acton Software, expected to add $27 million in revenue for 2025. Notably, Banzai recently paid off $20.3 million in debt, fully satisfying outstanding obligations and potentially benefiting net income and shareholders’ equity in the coming year. With these developments, Banzai continues to focus on integrating recent acquisitions and expanding its product offerings.

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