Veritone revises credit agreement terms, issues shares to lenders

Veritone, Inc. (NASDAQ:VERI), a provider of artificial intelligence technology solutions, has entered into an amendment to its existing credit and guaranty agreement, according to an 8-K filing with the Securities and Exchange Commission. The amendment, effective today, modifies certain financial covenants and terms of the credit agreement originally dated December 13, 2023. The company, which carries a substantial debt burden of $120.05 million against a market capitalization of $98.19 million, has been actively managing its financial obligations. InvestingPro data reveals the company’s debt-to-equity ratio stands at 8.92, highlighting the significance of this credit agreement modification.

The Denver-based company has reduced the minimum Consolidated Liquidity covenant from $15 million to $10 million. This adjustment is applicable from today through June 16, 2025. According to InvestingPro analysis, this move comes as the company faces liquidity challenges with a current ratio of 0.97 and is rapidly consuming its cash reserves. Additionally, Veritone has revised the mandatory prepayment covenant related to asset sales. Now, 100% of the Net Asset Sale Proceeds must be used to repay obligations under the credit agreement, an increase from the prior requirement of 60%. InvestingPro subscribers have access to 12 additional key insights about Veritone’s financial health and future prospects.

Furthermore, the company clarified that all future proceeds received from the sale of its formerly wholly-owned subsidiary, Veritone One, LLC, including any earn-out payments and releases of escrowed amounts, are to be directed towards repaying obligations under the credit agreement.

In securing the lenders’ consent for these amendments, Veritone issued 228,311 shares of its common stock to the consenting lenders. The shares, valued at an aggregate of $500,000, were priced at $2.19 per share, based on the closing price on The Nasdaq Stock Market on April 23, 2025.

The issuance of common stock was made under the company’s Registration Statement on Form S-3 filed on June 12, 2024, and the related Prospectus Supplement dated today. This strategic move aims to align the company’s financial obligations with its current operational and liquidity status.

The terms of the credit agreement remain unchanged except for the provisions amended by this latest agreement. The detailed terms of the amendment are included in the full text of the document, which is filed as an exhibit to the 8-K and incorporated by reference.

This announcement is based on a press release statement and provides an overview of the key changes to Veritone’s credit agreement and its immediate financial implications. With the stock currently trading at $2.19, InvestingPro analysis indicates the company appears undervalued based on its Fair Value model. Investors seeking deeper insights can access Veritone’s comprehensive Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks, which provides detailed analysis of the company’s financial health, valuation metrics, and growth prospects.

In other recent news, Veritone Inc . reported preliminary financial results for the first quarter of 2025, although these figures remain unaudited and subject to adjustments. The company has also confirmed revenue guidance for 2025, projecting growth of 23.6% at the midpoint, with anticipated revenues ranging from $107 million to $122 million. In the fourth quarter of 2024, Veritone delivered an impressive earnings per share of $0.72, surpassing the forecasted loss of $0.26, attributed to effective cost management and strategic divestitures. Additionally, Veritone has announced a strategic partnership with Technology North to improve public safety by expediting the redaction process of public records through AI solutions. Furthermore, Veritone has partnered with Carahsoft Canada Inc. to provide its AI solutions to Canadian federal agencies, enhancing operational efficiency through the Government of Canada’s Supply Arrangement for SaaS. H.C. Wainwright has maintained its Buy rating for Veritone, highlighting the company’s path to profitability and expected revenue growth in the public sector. The firm has also expressed confidence in Veritone’s strategic initiatives and cost-cutting measures. These developments underscore Veritone’s ongoing efforts to expand its market reach and improve its financial performance.

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