Sunday, October 25, 2020

ClearOne’s (CLRO) $5.3 Million Registered Direct Offering Pushes the Stock Higher

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Followed by the recent purchase and sale agreement of CleaOne’s common stock at a per-share price of $2.4925, shares of CLRO are trading higher on Friday. 

Shares of ClearOne, Inc. (CLRO) are waving back at the price target of $3 a few days after the company announced the registered direct offering at-the-market under Nasdaq rules. 

ClearOne on September 14 reported that it has signed definitive agreements with institutional and accredited investors, including the CEO of the company, Zeynep Hakimoglu, and its largest shareholder, Edward D. Bagley. The company was to sell a total of 2,116,050 common stock shares at a per share price of $2.4925.

Under the agreement, ClearOne issued unregistered warrants to the investors to purchase 1,058,025 additional common stock shares. The warrants were offered at a per share exercise price of $2.43 and exercisable with immediate effect having an expiry period of five years from the date of issuance. 

These warrants are offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, and Regulation D promulgated thereunder. In addition, the warrants and the common stock shares issuable upon exercise of the warrants have not been registered under the Securities Act of 1933. 

The exclusive placement agent for the offering was H.C. Wainwright & Co. The company anticipated the closing of the registered direct offering to happen on September 16, 2020, based on the fulfillment of customary closing conditions.

ClearOne expects estimated gross proceeds from the offering to be around $5.275 million, excluding offering expenses, and placement agent fees. The company plans to use the net proceeds from this offering for working capital and other general corporate purposes. 

The common stock shares (not the warrants issued in private placement) were offered by the company in accordance with the ‘shelf’ registration statement on Form S-3 filed with the Securities and Exchange Commission (SEC) on August 25, 2020, and made effective on September 1, 2020. 

The registered direct offering initially seems to have pushed the price of ClearOne, Inc. (CLRO) shares driven by the collection of capital worth $5 million. 

ClearOne has been trading with a decent momentum in a while. CRLO suddenly spiked in the premarket trading session on Friday with starting the day at $2.78. On the prior trading day, CRLO closed at $2.47 and soon after the opening of today’s market, it surged as high as $2.84. 

As of 2:42 P.M., ClearOne, Inc. (CLRO) was trading at $2.57 up by almost 4.04%. 

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