WEST PALM BEACH, Fla. - PSQ Holdings, Inc. (NYSE: PSQH), also known as PublicSquare, a commerce and payments ecosystem in the United States, has reached definitive agreements for a registered direct offering of its Class A common stock. The company's stock has shown remarkable momentum, with InvestingPro data showing a 266.83% return in the past week and currently trading near its 52-week high of $7.77. The company will sell 7,813,931 shares at $4.63 each, amounting to gross proceeds of approximately $36.2 million. The closing of the offering is anticipated on or about December 5, 2024, contingent upon customary closing conditions.
Roth Capital Partners (WA:CPAP) is the exclusive placement agent for this transaction. PublicSquare plans to allocate the net proceeds from this offering for general corporate purposes, which include working capital.
The offering is made possible through a shelf registration statement on Form S-3, which was filed with the U.S. Securities and Exchange Commission (SEC) on October 28, 2024, and became effective on November 1, 2024. The prospectus supplement and accompanying prospectus that are part of the registration statement will be available on the SEC’s website. These documents will provide further details about the offering.
PublicSquare operates across three segments: Marketplace, Financial Technology, and Brands. The Marketplace segment aims to enable consumers to shop in alignment with their values. Insights from this segment are used to tailor financial products and brands to customer needs. According to InvestingPro data, the company has achieved impressive revenue growth of 482.62% in the last twelve months, though maintaining a challenging financial position with an EBITDA of -$52.54 million. The Financial Technology segment includes Credova, a consumer financing firm, and PublicSquare Payments, which offers payment solutions. The Brands segment features EveryLife, a direct-to-consumer company specializing in life-affirming baby products.
The company's press release also contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ from those projected. These include the company's expectations about capital raises and the integration of business operations. InvestingPro analysis reveals several key insights about the company's outlook, including anticipated sales growth but continued profitability challenges. Subscribers can access 15+ additional ProTips and comprehensive financial metrics to better evaluate investment opportunities in PSQH.
This press release does not represent an offer to sell or a solicitation of an offer to buy securities. Such offers are made only by means of the prospectus supplement and accompanying prospectus. The information in this article is based on a press release statement from PSQ Holdings, Inc.
In other recent news, PSQ Holdings, also known as PublicSquare, has announced significant restructuring measures, including a workforce reduction of over 35% and voluntary executive salary cuts. This move is part of a strategic plan to streamline operations and focus on essential personnel. The company expects to incur a one-time severance charge of approximately $355,772.90, along with an estimated $37,367.37 for COBRA health insurance continuation coverage for those opting in.
Simultaneously, PublicSquare secured a $5.35 million investment to fund its payment platform's growth and a $10 million investment through a convertible note private placement, enhancing its financial flexibility. Despite softer second-quarter results leading to a price target reduction from $7.50 to $5.00 by Roth/MKM, the company reported a 39% quarter-over-quarter increase in its brands business following the acquisition of Credova.
In other developments, the company is migrating its Marketplace segment to the Rumble Cloud platform, a move expected to strengthen its commerce and payments operations. The launch of PSQ Payments is projected to serve as an additional catalyst for profitable growth towards the end of 2024, as noted by Roth/MKM. Lastly, television personality Tucker Carlson is set to speak at their upcoming Business Summit in Orlando, Florida.
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