Oblong Stock Falls On Raising $12.4M Via Institutional Share Offering At 22% Discount

Oblong Inc OBLG inked an agreement to sell 4 million shares at $3.1 per share to pre-existing and new institutional investors.
The offer price signifies a 21.7% discount to the Friday closing price of $3.96.
The estimated offering proceeds are $12.4 million.
It also included Series A warrants to sell 1 million shares at $4 per share in a registered direct offering.
The Series A warrants are exercisable until January 4, 2022.
Oblong also agreed to issue Series B warrants to the investors in a concurrent private placement to purchase 3 million shares. The share is exercisable six months and one day following issuance, are exercisable for three years from the initial exercise date, at $4.40 per share.
Oblong intends to use the offering proceeds for general corporate purposes, which may include working capital, capital expenditures, and other corporate expenses.
Oblong missed the first quarter FY21 revenue consensus by 47.7% at $1.92 million due to dismal product sales from its flagship Mezzanine collaboration suite. The EPS consensus beat Oblong 64.3% at $(0.23). It held $4 million in cash and equivalents as of March 31, 2021.
OBLG stock has gained 179% in the last year.
Price action: OBLG shares traded lower by 18.4% at $3.23 on the last check Monday.