English writing software developer WhiteSmoke Inc. has filed an amended prospectus with the US Securities and Exchange Commission (SEC) for an IPO on Nasdaq. The company plans to sell 1,875,000 shares at $8-10 per share, raising a gross $15-18.8 million at a company value of $33-41 million, or a midpoint value of $37.2 million. The company expects net proceeds of $13.9 million. The share will be traded under the symbol "WHSM".
There will be no offer to sell by shareholders, and the offering will greatly dilute their holdings. Evolution Venture Capital Fund's stake will fall from 30.3% to 16.6%, Yair Goldfinger's stake will fall from 7.5% to 4.1%, and the stake of the founders, chairwoman and CEO Hilla Ovil-Brener and VP R&D Liran Brener, will fall from 17.8% to 8.6%.
The underwriters, Rodman & Renshaw LLC, EarlyBirdCapital Inc., and National Securities Corporation have a 30-day over-allotment option to buy up to 281,250 shares, which if exercised in full at the high end price target, could increase the gross by $2.8 million.
The Whitesmoke Writer software corrects grammar, spelling, and style errors in English business, high-tech, biotech and other texts, and includes a multilingual dictionary. The software is adaptable for different programs. The company also makes money from its search application, which is designed for Google and other search engines. The company posted a net loss of $2 million on $8.7 million revenue in January-September 2011.
Published by Globes [online], Israel business news - www.globes-online.com - on November 9, 2011
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