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Today, Fathom Holdings Inc . (NASDAQ:FTHM), a real estate brokerage company, announced the termination of its common stock sales agreement with Roth Capital Partners (WA:CPAP), LLC. The prospectus supplement, dated January 23, 2025, and the sales agreement, which allowed for the issuance and sale of Fathom’s common stock, will not be utilized for any further stock sales until a new prospectus supplement is filed with the Securities and Exchange Commission (SEC). The announcement comes as the company’s stock has declined over 71% in the past six months, with InvestingPro data showing the shares currently trading at just 0.35 times book value.
The decision to halt the use of the current prospectus supplement comes without any sales of common stock having been made under the agreement. The company clarified that while the sales agreement itself remains effective, no additional stock will be sold under the current terms as set out in the January prospectus supplement. According to InvestingPro analysis, Fathom maintains a current ratio of 1.55, indicating sufficient liquid assets to meet short-term obligations, though the company is experiencing rapid cash burn.
The original agreement with Roth Capital Partners was part of Fathom Holdings’ strategic financial planning, aimed at providing the company with the flexibility to sell shares and raise capital as needed. The filing of a new prospectus supplement would be the next step for the company if it decides to resume selling shares under the agreement.
Fathom Holdings, with its headquarters in Cary, North Carolina, operates in the real estate agents and managers industry, under the organizational name 05 Real Estate & Construction. The company is known for providing a technology-driven platform for real estate agents, alongside other services in the real estate sector.
The initial sales agreement and the associated prospectus supplement were filed with the SEC on January 23, 2025, as documented in the company’s previous Form 8-K. Today’s announcement is based on the information provided in the latest SEC filing by Fathom Holdings Inc. Investors and stakeholders are advised to review the company’s filings for further details on this development.
In other recent news, Fathom Holdings Inc. has announced plans to incorporate Bitcoin into its treasury management program, with approval from its Board of Directors. The company intends to allocate up to 50% of its excess cash to Bitcoin purchases, aiming to acquire up to $500,000 in Bitcoin or Bitcoin-related funds in the next two weeks. This move is part of Fathom’s strategy to diversify its treasury and potentially use Bitcoin as a payment option in real estate transactions. Additionally, the integration of My Home Group, acquired in November 2024, is expected to contribute over $110 million in revenue for 2025. Despite rising mortgage rates, Fathom estimates a 21% to 24% increase in fourth-quarter 2024 revenues compared to the previous year, with gross profit expected to rise by 28% to 30%. The company also reported a 23% increase in agent count to approximately 14,500 and a 16.5% rise in brokerage transaction count for the fourth quarter. Fathom aims to leverage its growing revenue and gross profit to achieve positive Adjusted EBITDA for the full year of 2025. The company’s financial results are preliminary and have not been audited or reviewed by its independent accounting firm.
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