SeaChange Shares Are Trading Lower On Raising $19.1M Via Equity At 11% Discount

Video delivery platforms provider SeaChange International Inc SEAC priced 10.3 million shares at $1.85 per share to raise $19.1 million in gross proceeds in a secondary public offering.
The offer price signifies an 11% discount to the company’s Monday closing price of $2.08.
The underwriter can purchase additional shares equivalent to 15% of the offering size under a 45-day option.
The company will utilize the offering proceeds for general corporate purposes, working capital, potential acquisitions, and other business opportunities.
The company held cash and cash equivalents of $5.1 million as of Oct. 31, 2020.
SeaChange’s stock has gained 137% in the last six months.
Price action: SEAC shares traded lower by 27.9% at $1.50 on the last check Tuesday.