Inventory Global, Inc. (NASDAQ: INVT) saw its shares slide on Thursday after the company announced that it would be having a secondary offering. The company intends to price 6 million shares at $1 per share that come with warrants to purchase up to 6 million shares of common stock, exercisable for a period of five years at the price of $1 per share. The offering is expected to close on October 11.
The underwriters for the offering are Chardan Capital Markets, which acted as the lead placement agent, and Dawson James, which acted as co-placement agent in connection with the offering.
Keep in mind that the total gross value of this offering is $6 million, while the company has a current market cap of $4 million at its current price level.
This is an intellectual property (IP) investment and licensing company that helps technology-leading corporations attain greater value from their IP assets in support of their business objectives and corporate brands. It works to develop long-term relationships with significant, technology-leading companies seeking to strategically realize appropriate returns for selected portfolios of their IP assets, in which they have invested significant research and development (IP value creation).
Inventory Global offers clients a professional corporate licensing model for IP value creation that provides both short term returns and attractive, long-term licensing revenue. The company had focused initially on developing relationships with telecommunications companies, but this business purpose is not limited to this industry. Inventory Global aspires to be a market-leader in IP value creation across various technology and market segments.
In a recent filing the company said that it intends to use the net proceeds from this offering for the payment to a seller of patents, as well as for working capital and general corporate purposes.
Shares of Inventory Global were last trading down about 33% at $0.83, with a consensus analyst price target of $10.30 and a 52-week trading range of $0.71 to $3.67.