HOUSTON, TX – Direct Digital Holdings, Inc. (NASDAQ:DRCT), an advertising services company, has disclosed the sale of unregistered equity securities through a recent filing with the Securities and Exchange Commission (SEC).
The company announced that it sold 400,000 shares of its Class A Common Stock between the end of the last reporting period on December 31, 2024, and January 6, 2025, for a total cash consideration of $620,371 after discounts. Following this, an additional 400,000 shares were sold from January 6 to January 7, 2025, for $488,145 in cash after discounts. According to InvestingPro data, the company's market capitalization stands at $24.42 million, with the stock showing significant volatility over the past year, having fallen nearly 87% from its 52-week high of $35.88.
These transactions were part of a Share Purchase Agreement with New Circle Principle Investments LLC ("New Circle"), where New Circle confirmed its status as an "accredited investor" under the Securities Act of 1933. The sales were conducted under the exemption from registration requirements provided by Section 4(a)(2) of the Securities Act.
Direct Digital Holdings, based in Houston, Texas, has its primary executive offices located at 1177 West Loop South, Suite 1310. The company's Class A common stock is listed and actively traded on The Nasdaq Stock Market LLC under the trading symbol DRCT.
In other recent news, Direct Digital Holdings has experienced significant financial developments. The advertising services company reported a sharp revenue drop of 85% from $59.5 million to $9.1 million. Despite these challenges, the company outlined a recovery strategy, including a diversification and optimization plan. Direct Digital Holdings also provided revised revenue guidance for fiscal years 2024 and 2025, with projections set at $60 million to $70 million for FY 2024 and $90 million to $110 million for FY 2025.
In addition, the company has entered into amendments to its credit agreements, which included a prepayment of $5 million on the revolving credit notes and revised financial covenants. Direct Digital Holdings also secured a $6 million term loan from Lafayette Square Loan Servicing and sold 800,000 shares of its Class A Common Stock in unregistered transactions to New Circle Principle Investments LLC.
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