Digital Turbine Inc. (NASDAQ: APPS) announced the pricing of its public offering of 7.6 million shares of common stock as $1.57 per share to the public. There is an overallotment option for an additional 1.14 million shares. The entire offering is valued up to $13.72 million.
B. Riley is acting as the sole underwriter for this offering, which is expected to close around October 2.
The net proceeds to Digital Turbine from this offering are expected to be approximately $11.2 million. Digital Turbine expects to use these proceeds for organic business opportunities, product development, general corporate purposes, working capital and capital expenditures.
The company innovates at the convergence of media and mobile communications, delivering end-to-end products and solutions for mobile operators, application advertisers, device OEMs and other third parties to enable them to effectively monetize mobile content and generate higher value user acquisition. Digital Turbine operates its business in two reportable segments: Advertising and Content.
It is worth noting that prior to this announcement, the company had a market cap of $98 million, with a $1.71 close. At the offering price of $1.57, the company would have a market cap of roughly $90 million.
So far in 2015, Digital Turbine has underperformed the market, with the stock down nearly 50% year to date. It is down 64% over the past 52 weeks.
Shares of Digital Turbine were down 4% at $1.64 on Tuesday morning. The stock has a consensus analyst price target of $9.67 and a 52-week trading range of $1.60 to $4.89.
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