LAS VEGAS-based Verb Technology Company (NASDAQ:VERB), Inc. has announced the withdrawal of its previously filed Form 1-A offering statement, indicating that no securities will be sold under the proposed offering. Today, the company, which operates under the personal services sector and is listed on The Nasdaq Stock Market LLC under the symbols NASDAQ:VERB for common stock and NASDAQ:VERBW for purchase warrants, communicated that it considers itself sufficiently capitalized and has opted not to proceed with the capital raise initially planned for May 31, 2024.
The statement released today by Verb Technology, which has undergone several name changes in the past, including nFusz , Inc., BBOOTH, INC., and Global System Designs, Inc., clarifies that the decision to cancel the offering was made internally and no external sales of shares have occurred in relation to the Form 1-A. The company's decision to pull back from the offering comes after a strategic assessment of their financial position and capital requirements.
Verb Technology's President and Chief Executive Officer, Rory J. Cutaia, signed off on the report, fulfilling the company's regulatory obligations under the Securities Exchange Act of 1934. The company's headquarters are located at 3024 Sierra Juniper Court in Las Vegas, Nevada, and they are incorporated in the state of Nevada.
This move by Verb Technology aligns with its current assessment of financial health and capitalization. The company's actions are detailed in a Form 8-K filed with the U.S. Securities and Exchange Commission, which serves as the basis for this news report.
In other recent news, Verb Technology has been making significant strides in its business operations. The company recently announced a partnership with BeautyStat to host a live shopping event on TikTok, leveraging Verb's interactive video-based sales expertise to provide a unique shopping experience. This partnership aligns with Verb's strategy of expanding its interactive sales applications and BeautyStat's commitment to innovation in skincare.
Verb Technology has also entered into a significant partnership with TikTok Shop, which aims to streamline the process for TikTok Shop sellers, enabling them to produce and sell custom merchandise directly to consumers. This collaboration is expected to generate revenue for Verb Technology through service fees and a percentage of monthly revenue from TikTok stores established via their platform.
On the financial front, Verb Technology reported a significant improvement in its financial health, as evidenced by the absence of a "Going Concern" opinion in its audited financial statements for 2023. The company's cash and equivalents stood at approximately $14.2 million, and notes payable were around $1.2 million, indicating a positive shift in its operational sustainability.
However, Verb Technology is facing potential delisting from the Nasdaq Stock Market due to its share price falling below the minimum bid price requirement. The company has requested a hearing before the Nasdaq Hearings Panel to appeal the decision and has proposed a reverse stock split to address the bid price deficiency.
These recent developments reflect Verb Technology's efforts to improve its financial position and expand its partnerships. The company's management has expressed confidence in their improved cash position and reduced operating costs.
InvestingPro Insights
In light of Verb Technology Company, Inc.'s recent decision to withdraw its Form 1-A offering statement, a closer look at the company's financial health through InvestingPro data may provide additional context for investors. According to real-time metrics, Verb Technology has a notably small market capitalization of approximately $10.53 million. Despite an impressive revenue growth of over 684% in the last twelve months as of Q2 2024, the company's operating income margin is deeply negative at around -11788%, indicating substantial losses relative to its revenue.
InvestingPro Tips suggest that Verb Technology is currently not profitable and analysts do not anticipate it becoming profitable this year. Moreover, the company is experiencing a rapid cash burn and holds more cash than debt, which could be a factor in its decision to cancel the offering. It is also worth noting that Verb Technology is considered a niche player in its industry, which may impact its long-term growth potential.
For investors considering Verb Technology, it may be beneficial to review the full set of 14 InvestingPro Tips available at https://www.investing.com/pro/VERB to gain a more comprehensive understanding of the company's financial position and market performance.
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