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Veritone Announces Equity Offering of $10 Million Backed by CEO

1. Veritone announces a direct offering of over 6.4 million shares at $1.09. 2. The offering may dilute existing shares but could raise needed capital.

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FAQ

Why Bearish?

The issuance of new shares generally dilutes existing shareholders, impacting the stock price negatively. Historically, similar offerings have led to short-term price declines due to concerns over dilution.

How important is it?

The capital raised is crucial for operational growth, but dilution raises concerns for current shareholders. Stock offerings can be a sign of financial stress if not interpreted positively within the context of strategic initiatives.

Why Short Term?

Dilution effects from stock offerings typically manifest quickly, influencing immediate trading activity. Previous instances in tech stocks show rapid market reactions post-offering announcements.

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LSTMSNAPAI
DENVER--(BUSINESS WIRE)--Veritone, Inc. (NASDAQ: VERI) (“Veritone” or the “Company”), a leader in building human-centered enterprise AI solutions, today announced that it has entered into a definitive agreement providing for the purchase and sale of an aggregate of 6,452,293 shares of common stock and pre-funded warrants to purchase up to 1,804,587 shares of its common stock at a purchase price of $1.09 per share (or $1.08 for each pre-funded warrant) in a registered direct offering. The pre-fu.

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