The OLB Group, Inc., a provider of cloud-based omni-commerce and payment acceptance solutions for small- and mid-sized merchants, announced it has closed its previously announced private placement priced at-the-market under Nasdaq rules (the “Offering”). The Offering consisted of 4,545,455 shares of Common Stock (“Common Stock”) (or pre-funded warrants in lieu thereof) and warrants to purchase up to 4,545,455 shares of Common Stock (“Common Warrants”), for gross proceeds to OLB of approximately $25 million, before deducting placement agent fees and other estimated offering expenses payable by the Company. The purchase price of each share of Common Stock (or pre-funded warrant in lieu thereof) and associated Common Warrant is $5.50. The Common Warrants have an exercise price of $6.50 per share of Common Stock and may be exercised at any time prior to the five-year anniversary of the effective date of the resale registration statement.
H.C. Wainwright & Co. is acting as the exclusive placement agent for the private placement.
The Company intends to use the net proceeds from the private placement to invest in or acquire companies or technologies that are synergistic with or complimentary to its business, to expand and market its current products and for working capital and general corporate purposes.
The securities offered in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws, and unless so registered, any such securities may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws. Under an agreement with the investors, the Company agreed to file an initial registration statement with the Securities and Exchange Commission (the “SEC”) covering the resale of the shares of Common Stock to be issued to the investors (including shares underlying the pre-funded warrants) and the shares of Common Stock issuable upon the exercise of the Common Warrants within 15 days and to use best efforts to have the registration statement declared effective as promptly as possible thereafter, and in any event no later than 75 days in the event of a “full review” by the SEC.
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This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
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