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CARY, N.C. - Fathom Holdings Inc. (NASDAQ:FTHM), a technology-driven real estate services firm with a current market capitalization of $16.3 million, has announced a registered direct offering expected to generate approximately $3 million in gross proceeds. The offering includes the sale of over 3.5 million shares to certain investors at $0.6847 each and around 832,000 shares to board members at $0.7206 per share, the consolidated closing bid price on March 10, 2025. The stock, which has declined over 52% year-to-date according to InvestingPro data, appears undervalued based on Fair Value analysis.
The transaction is scheduled to close around March 14, 2025, subject to customary closing conditions. The company is also set to appoint Adam Rothstein to its board, pending board approval and recommendation from its Nominating and Corporate Governance Committee. New investors, led by Rothstein and ReMY Capital Partners III LP, and current board members Scott Flanders and Steve Murray, are participating in the offering. InvestingPro analysis indicates the company’s financial health score is currently weak, with a quick cash burn rate, though its current ratio of 1.55 suggests adequate short-term liquidity.
Fathom intends to use the net proceeds for general corporate purposes, working capital, and funding strategic acquisitions that complement its current operations. The offering is made under a shelf registration statement filed with the Securities and Exchange Commission (SEC) on December 29, 2023, and declared effective on January 11, 2024.
The securities are being offered through a prospectus forming part of the registration statement. Interested parties can access the prospectus supplement and accompanying prospectus on the SEC’s website or directly from the company.
Fathom Holdings Inc., known for integrating residential brokerage, mortgage, title, and software-as-a-service (SaaS) offerings, leverages its proprietary cloud-based software, intelliAgent. Its portfolio includes Fathom Realty, Encompass Lending, intelliAgent, LiveBy, Real Results, and Verus Title. Trading at a Price/Book ratio of just 0.35, the company presents interesting metrics that warrant deeper analysis. For comprehensive insights and additional ProTips about FTHM, investors can access the detailed Pro Research Report available on InvestingPro.
This press release does not constitute an offer to sell or a solicitation to buy the securities described, nor will there be any sale of these securities in states or jurisdictions where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The information in this article is based on a press release statement from Fathom Holdings Inc.
In other recent news, Fathom Holdings has announced a 21% to 24% increase in estimated fourth-quarter 2024 revenues compared to the same period the previous year, with an anticipated gross profit rise of 28% to 30%. The company attributes this growth partly to the integration of My Home Group, expected to contribute over $110 million in revenue for the full year of 2025. Additionally, Fathom Holdings has adopted Bitcoin as a significant asset within its treasury management program, planning to allocate up to 50% of its excess cash towards Bitcoin purchases. This strategic move aims to diversify the company’s treasury and explore Bitcoin as a future payment option in real estate transactions. Fathom Holdings also reported a 23% increase in agent count, reaching approximately 14,500 by the end of 2024, alongside a 16.5% rise in brokerage transaction count for the fourth quarter. In a separate development, Fathom Holdings has ceased its common stock sales agreement with Roth Capital Partners, LLC, without any sales having been made under the agreement. The company clarified that while the sales agreement remains effective, no additional stock will be sold until a new prospectus supplement is filed with the SEC. These developments reflect Fathom Holdings’ ongoing strategic initiatives and financial planning efforts.
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