LOS ANGELES - Thumzup Media Corporation (NASDAQ:TZUP), a company specializing in social media branding and marketing solutions, has finalized an additional sale of shares on Friday, resulting in total gross proceeds of approximately $8.2 million. This follows the exercise of an overallotment option by Dawson James Securities, Inc., the underwriter of Thumzup’s public offering, which closed on October 30, 2024.
The overallotment entailed the purchase of an additional 213,750 shares at the price of $5.00 per share, bringing the total number of shares sold in the offering to 1,638,750. The completion of this option occurred today with the gross proceeds before underwriting discounts, commissions, and other offering expenses reaching $8,193,750.
Dawson James Securities, Inc. served as the Sole Book-Running Manager for the offering. Legal representation for Thumzup was provided by Sichenzia Ross Ference Carmel LLP from New York, while ArentFox Schiff LLP from Washington, D.C., represented the underwriter.
The offering was conducted following a registration statement on Form S-1 (File No. 333-279828) that was declared effective by the United States Securities and Exchange Commission (SEC) on October 28, 2024. The securities were offered exclusively through a prospectus, which is available on the SEC's website.
Thumzup's platform is known for its approach to the social media marketing industry, allowing users to earn cash for posting about advertisers on major social networks, with payments processed through PayPal (NASDAQ:PYPL) and Venmo. The company aims to democratize the industry through its user-friendly advertiser dashboard and consumer app.
This press release contains forward-looking statements regarding Thumzup's potential growth and impact on the advertising industry. These statements are based on current expectations and projections about future events and are subject to risks, uncertainties, and assumptions. The company cautions that actual results could differ materially from those anticipated in these forward-looking statements.
The information in this article is based on a press release statement from Thumzup Media Corporation.
InvestingPro Insights
Thumzup Media Corporation's recent public offering and overallotment exercise have brought significant attention to the company's financial position and market performance. According to InvestingPro data, Thumzup has demonstrated impressive revenue growth of 209.92% over the last twelve months as of Q2 2024, which aligns with the company's recent capital raise and expansion efforts.
However, investors should note that Thumzup is currently not profitable over the last twelve months, as highlighted by one of the InvestingPro Tips. This is further reflected in the company's adjusted P/E ratio of -30.19, indicating that the company is still in a growth phase and reinvesting in its operations.
Despite the lack of profitability, Thumzup boasts a strong gross profit margin of 78.95%, which is particularly impressive for a company in the social media and marketing solutions industry. This high margin suggests that Thumzup's business model has the potential for scalability and future profitability as it grows its user base and advertiser network.
It's worth noting that Thumzup's stock has experienced a significant uptick over the last six months, with a price total return of 39.27%. This positive momentum could be attributed to investor optimism surrounding the company's growth prospects and recent capital raise.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for Thumzup, providing a more comprehensive view of the company's financial health and market position.
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