Veritone CEO backs $10 million equity offering

Veritone, a leading provider of human-centered enterprise AI solutions, recently announced an equity offering of $10 million, backed by its CEO, Ryan Steelberg. The offering includes the purchase and sale of over 6.4 million shares of common stock and pre-funded warrants to purchase additional shares. Esousa Group Holdings, LLC, an existing investor, led the offering with a $6 million investment. D. Boral Capital LLC acted as the placement agent in the offering.

Simultaneously, Veritone conducted a private placement transaction, issuing shares of common stock to CEO Ryan Steelberg for aggregate gross proceeds of $1 million. The price per share was determined based on the consolidated closing bid price of Veritone stock on specific dates.

The total gross proceeds from the offerings are expected to reach approximately $10 million, before accounting for offering expenses. Veritone plans to utilize the net proceeds, combined with its existing cash reserves, for general corporate purposes, including working capital, capital expenditures, debt service, repayment of indebtedness, and further development and marketing of its AI platform and applications.

The securities offered in the direct offering by Veritone were sold under a shelf registration statement on Form S-3, which was filed with the SEC in 2024 and became effective in the same year. The offering is being made through a base prospectus and prospectus supplement. The final prospectus will be filed with the SEC and made available on their website. Interested parties can also obtain electronic copies from Veritone directly.

The shares offered in the private placement were not part of a public offering and were sold under specific regulations to comply with the Securities Act of 1933. Therefore, these shares have not been registered under the Securities Act or state securities laws, restricting their reoffering or resale within the United States.

Despite the substantial offering, this press release clarifies that it does not constitute an offer to sell or a solicitation to buy the mentioned securities. Any sale of these securities would need proper registration or qualification under the securities laws of respective states or jurisdictions.

Veritone, traded under the NASDAQ ticker symbol VERI, is dedicated to developing human-centered enterprise AI solutions for various industries, including media, entertainment, public sector, and talent acquisition. Their AI platform, aiWARE™, integrates machine learning models to efficiently process data sources into actionable insights. By combining human expertise with AI technology, Veritone aims to enhance organizational capabilities and solve complex problems, ultimately improving lives worldwide.

This announcement includes forward-looking statements concerning the completion and timing of the offering, satisfaction of closing conditions, expected proceeds, and the intended use of funds. Veritone emphasizes that these statements are based on their current expectations and should not be considered guarantees of future performance.