Quantum Completes Raising $67.5M Via Oversubscribed Rights Offering

Quantum Corporation QMCO completed raising $67.5 million by selling 30 million shares in an oversubscribed rights offering.
All eligible directors and executive officers purchased 0.14 million shares.
Quantum looks to use the offering proceeds for debt repayment of $20.0 million and improve its balance sheet strength, and for working capital and other general corporate purposes.
Chair and CEO Jamie Lerner, Chairman, said, "The proceeds enable us to strengthen our balance sheet, reducing our debt by $20 million and adding over $45 million to our cash position. These steps establish a stronger financial footing for the Company during these ongoing supply-constrained times, allowing us to maintain our focus on growing revenue and fulfilling the increasing demand for our storage solutions."
Price Action: QMCO shares traded higher by 9.50% at $2.19 on the last check Tuesday.