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Veritone Announces Proposed $150 Million Offering of Convertible Senior Notes
DENVER--(BUSINESS WIRE)-- Veritone, Inc. (NASDAQ: VERI) creator of aiWARE, a hyper-expansive enterprise AI platform, today announced that it intends to
About this update from Veritone, Inc.
[{"type":"text","content":" DENVER--(BUSINESS WIRE)--\nVeritone, Inc. (NASDAQ: VERI) creator of aiWARE, a hyper-expansive enterprise AI platform, today announced that it intends to offer, subject to market conditions and other factors, $150 million aggregate principal amount of convertible senior notes due 2026 (the “notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The company also intends to grant the initial purchasers of the notes an option to purchase, for settlement within a period of 13 days from, and including, the date notes are first issued, up to an additional $22.5 million aggregate principal amount of the notes if the initial purchasers sell more notes than $150 million principal amount of notes.\n\nThe notes will be senior, unsecured obligations of the company, and will accrue interest payable semi-annually in arrears. The notes will mature on November 15, 2026, unless earlier converted, redeemed or repurchased by the Company. Noteholders will have the right to convert their notes in certain circumstances and during specified periods. Upon conversion, the notes may be settled in cash, the company’s common stock, or a combination of cash and the company’s common stock, at the company’s election. The notes will not be redeemable at the company’s option prior to November 20, 2024. On or after November 20, 2024, the company may redeem the notes for cash, at its option, if the last reported sale price of the company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the company provides notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.\n\nIn connection with the pricing of the notes, the company expects to enter into capped call transactions with one or more of the initial purchasers or their respective affiliates and/or other financial institutions (the “option counterparties”). The capped call transactions are expected generally to reduce the potential dilut...