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NEW YORK - Fluent, Inc. (NASDAQ: FLNT), a provider of commerce media solutions currently trading near its 52-week low of $2.01, has completed a private placement of pre-funded warrants, securing approximately $5 million in gross proceeds, the company disclosed Monday. According to InvestingPro data, this funding comes at a crucial time as the company faces significant cash burn challenges. The warrants allow for the purchase of up to 2,332,104 shares of Fluent’s common stock at a price of $2.174 each, with an exercise price set at $0.0005 per share upon stockholder approval.
The transaction, which closed on March 20, 2025, is subject to the standard closing conditions and the approval of Fluent’s stockholders, expected to be sought at the upcoming annual meeting. Fluent’s CEO, Don Patrick, expressed enthusiasm for the support from insider shareholders and the company’s strategic pivot to Commerce Media Solutions, a segment reportedly experiencing triple-digit growth year-over-year since its early 2023 inception. This pivot comes as the company faces challenging financial metrics, with InvestingPro analysis showing a concerning -14.67% revenue decline in the last twelve months and a weak overall financial health score.
The proceeds from this private offering are earmarked for general corporate purposes. The issuance of these pre-funded warrants is pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. Consequently, the warrants and the common stock underlying them have not been registered under the Securities Act or any state securities laws and are thus subject to restrictions on their resale in the United States.
Fluent, Inc., established in 2010 and listed on the NASDAQ, specializes in connecting brands with consumers through its proprietary advertising inventory, data, and machine learning technology. The company aims to enhance monetization and consumer engagement for its partners throughout the customer journey.
This financial move is seen as a reinforcement of Fluent’s financial position and a boost to its momentum as it seeks to expand its market share within the rapidly growing commerce media sector. With a market capitalization of $40.85 million and current debt-to-equity ratio of 1.5, the company’s valuation metrics suggest it may be undervalued according to InvestingPro Fair Value analysis. For deeper insights into Fluent’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, which provides detailed analysis of key metrics and growth drivers among 1,400+ US stocks.
In other recent news, Fluent Inc. reported a 10% year-over-year decline in revenue for the fourth quarter of 2024, totaling $65.4 million. The company also experienced a widened net loss of $3.4 million compared to $1.9 million the previous year. Despite these setbacks, Fluent’s Commerce Media Solutions (CMS) division saw a 139% increase in revenue during the same quarter, contributing to a full-year growth of 284%. Analysts at Canaccord Genuity have adjusted their price target for Fluent, reducing it to $3.50 from $4.00 while maintaining a Hold rating due to mixed financial results and potential financial uncertainties.
Fluent’s Owned and Operated (O&O) segment faced a year-over-year decline of over 20% in the fourth quarter, primarily due to a write-down in the Affordable Care Act (ACA) component of its Call Solutions segment. The company is focusing on stabilizing its O&O business while driving growth from its CMS division, which is projected to experience triple-digit growth in fiscal year 2025. Fluent has also amended its credit agreement, extending the deadline to raise at least $5 million in additional capital by March 2025. The company is exploring various funding options, including equity and subordinated debt financings, to secure the necessary capital for future operations.
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