SCHAUMBURG, IL – Giftify, Inc. (NASDAQ: GIFT), a company specializing in digital incentives and rewards, has entered into an agreement to sell approximately $5 million of its common stock in a direct offering to select investors. The company, currently valued at $26.3 million, has seen its stock price decline by over 75% in the past year. According to InvestingPro analysis, the stock is currently trading near its Fair Value. The transaction is slated to close around December 26, 2024, contingent on standard closing conditions.
The offering is being managed by Craft Capital LLC as the sole placement agent. According to the company, the gross proceeds from the sale before expenses and placement agent fees are estimated to be $5 million. With current financial metrics showing a gross profit margin of 12.4% and operating with moderate debt levels, this capital raise comes at a crucial time. This offering is being conducted under a previously filed and effective shelf registration statement with the Securities and Exchange Commission (SEC), and the specific terms will be detailed in a prospectus supplement to be filed with the SEC.
Giftify owns CardCash.com, a secondary market for gift cards, and Restaurant.com, a provider of dining deals. These platforms aim to offer value to consumers by facilitating the buying and selling of gift cards and providing savings at various restaurants.
The press release clarified that this announcement does not constitute an offer to sell or a solicitation of an offer to buy any securities. Sales of these securities will not be made in any jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of any such state or jurisdiction. InvestingPro subscribers have access to 12 additional key insights about Giftify’s financial health and market performance, helping investors make more informed decisions.
The press release contains forward-looking statements that involve risks and uncertainties. These statements are based on assumptions that may not be accurate in the future. Giftify, Inc. cautions investors not to place undue reliance on these forward-looking statements, as actual results could differ materially from those projected.
This news article is based on a press release statement from Giftify, Inc.
In other recent news, RDE, Inc., now known as Giftify, Inc., has initiated an at-the-market equity offering program, potentially selling up to $30 million worth of shares. The sales will be facilitated by Ascendiant Capital Markets, LLC, as per the Sales Agreement. In another major development, the company has rebranded to Giftify, Inc., a strategic move to broaden its incentive-based offerings.
Giftify, Inc. has also secured a $2 million financing agreement with Spars Capital Group, which is set to mature in 2025. In leadership changes, Steve Handy, with over 20 years of financial leadership experience, has been appointed as the new Chief Financial Officer. Additionally, the company’s Chief Technology Officer, Balazs Wallisch, has increased his ownership to 1,040,217 shares. These are among the recent developments as the company continues to evolve in the competitive retail landscape.
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