Offerpad announces $6 million registered direct offering at $2.10 per share

TEMPE, Ariz. - Offerpad Solutions Inc. (NYSE:OPAD), a residential real estate platform with a market capitalization of $58.41 million, announced Wednesday it has entered into a securities purchase agreement with an institutional investor for a registered direct offering of 2,857,143 shares of common stock at $2.10 per share. According to InvestingPro data, the stock has shown strong returns over the past three months despite historically high price volatility.

In a concurrent private placement, the company will issue warrants to purchase up to 1,428,571 shares of common stock to the same investor. These warrants will have an exercise price of $2.30 per share, become exercisable after six months, and expire four years after the initial exercise date.

The transactions are expected to close around July 25, 2025, pending customary closing conditions. Offerpad anticipates gross proceeds of approximately $6 million before deducting placement agent fees and offering expenses. The company plans to use the net proceeds for general working capital.

A.G.P./Alliance Global Partners is serving as the sole placement agent for the offerings.

The registered offering is being conducted under an effective shelf registration statement previously filed with the SEC. The private placement of warrants is being made under an exemption from registration requirements.

Offerpad, founded in 2015, operates a technology platform for residential real estate transactions that offers services ranging from cash offers to renovation solutions. The announcement was made in a press release statement from the company.

In other recent news, Offerpad Solutions Inc. announced several amendments to its loan agreements. The company reduced its senior facility uncommitted amount with Citibank from $375 million to $175 million, while also modifying a separate agreement to decrease the committed amount from $150 million to $25 million and increase the uncommitted amount to $375 million. Additionally, Offerpad revised its agreements with LL Private Lending Fund, adjusting loan maturities and reducing committed amounts. In the realm of analyst ratings, Jefferies cut its price target for Offerpad to $1.00, maintaining a Hold rating, following first-quarter results that met expectations and a promising second-quarter revenue forecast. Meanwhile, Citizens JMP downgraded Offerpad from Market Outperform to Market Perform, citing first-quarter revenues that fell short of expectations, despite adjusted EBITDA exceeding consensus. The analysts expressed concerns about macroeconomic uncertainties impacting Offerpad’s capital-intensive business model. Offerpad also held its Annual Meeting of Stockholders, electing three directors and ratifying Deloitte & Touche LLP as its accounting firm for 2025.

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