Oblong, the award-winning maker of multi-stream collaboration solutions, announced that it has entered into a definitive agreement with certain institutional and accredited investors to raise aggregate gross proceeds of $5.0 million through a private placement of its common stock. The private placement is expected to close on or about December 7, 2020, subject to customary closing conditions. The Company expects to use the net proceeds of the private placement for general corporate purposes.
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Oblong expects to issue an aggregate of 1,250,000 shares of the Company’s common stock in the private placement at a gross price of $4.00 per share. Additionally, investors in the private placement will be issued warrants to purchase up to 625,000 shares of the Company’s common stock. The warrants will have an exercise price of $5.49 per share and a term of 30 months. The warrants will be exercisable beginning six (6) months following the closing of the private placement. Subject to the registration of the common shares underlying the warrants, the warrants may be exercised only for cash, and upon exercise would generate up to an additional $3.4 million in gross proceeds to the Company.
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The Special Equities Group, a division of Bradley Woods & Co. Ltd., acted as exclusive placement agent for the transaction.
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission or an applicable exemption from such registration requirements. Oblong has agreed to file a registration statement with the Securities and Exchange Commission covering the resale of the shares of common stock, including the shares of common stock issuable upon exercise of the warrants, sold in the private placement.