Business
Phunware Announces Purchase Agreement for up to $30 Million with Lincoln Park Capital Fund
The Agreement Provides Phunware the Right, But Not the Obligation, to Sell Stock to Lincoln Park Over A 24-Month Period at the Company's Sole Discretion
About this update from Phunware, Inc.
[{"type":"text","content":"The Agreement Provides Phunware the Right, But Not the Obligation, to Sell Stock to Lincoln Park Over A 24-Month Period at the Company's Sole Discretion\nAUSTIN, Texas, Aug. 24, 2023 (GLOBE NEWSWIRE) -- Phunware, Inc. (NASDAQ: PHUN) (the “Company”), the pioneer of Location Based SaaS that offers the only fully integrated enterprise cloud platform for mobile that enables brands to engage, manage and monetize anyone anywhere, has entered into a purchase agreement for a committed equity facility with Lincoln Park Capital Fund, LLC (“LPC”), a Chicago-based institutional investor. Russ Buyse, Chief Executive Officer of Phunware, commented, \"We are excited about the future of the Company, and this financing agreement provides us the flexibility to further commercialize our industry-leading platform, while giving us the best chance to limit dilution before realizing important strategic milestones that we believe will maximize shareholder value.” Under the purchase agreement, Phunware will have the right, but not the obligation, to sell up to $30.0 million of its common stock to LPC over a 24-month period subject to the terms and conditions of the agreement. Phunware will control the timing and amount of any sales to LPC with no upper limits to the price LPC may pay to purchase such common stock. The purchase agreement may be terminated by Phunware at any time, in its sole discretion, without any additional cost or penalty. \"This agreement allows us to be opportunistic with our capital strategy, and our shelf registration statement provides the potential for additional financing alternatives as we consider what’s best for shareholders,\" stated Troy Reisner, Phunware’s Chief Financial Officer. “Given the ongoing market uncertainty, we believe this kind of optionality is critical and we are excited to enter into this agreement with Lincoln Park Capital as part of Phunware’s long-term growth strategy.” A description of the purchase agreement is set forth in the Company's Current Report on Form 8-K, which the Company filed with the SEC on Wednesday, August 23, 2023. Safe Harbor Clause and Forward-Looking Statements This press release includes forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financi...