Israeli software company Attunity Inc. (Nasdaq: ATTU) had $7.3 million in cash at the end of the third quarter, and this amount is now likely to increase by $20 million. The company yesterday announced that it was planning an offering, and today reported the pricing for it. The company will raise $20 million through an issue of three million new shares at $6.75 a share, 6.5% lower than yesterday's closing price.
The amount to be raised can increase by $3 million, because the underwriters for the offering, William Blair, Needham & Co., and Roth Capital, have a greenshoe option to buy up to 445,000 more shares at the same price. The offering is being based on an existing shelf prospectus that allows the company to raise up to $50 million.
Attunity, based in Kfar-Saba, provides software solutions that facilitate accessing, management, sharing, and distribution of data. The company's market cap is $125 million, after a 14.8% rise in its share price over the past year.
Investor base expected to broaden
Attunity says that it will use the money from the offering to carry out its strategic plan, among other things by expanding its sales, marketing, and R&D activity, as well as through acquisitions and investments. It will also use the money for working capital and other general needs.
The offering is also likely to expand Attunity's base of investors, which currently includes only one investment institution - Yelin Lapidot, which has a 7% stake in the company. The largest shareholder in Attunity is chairperson and CEO Shimon Alon, with a 9.8% stake, while director Ron Zuckerman owns 5%.
Attunity's revenue grew 12.6% to $43.8 million in the first three quarters of 2017. The company's revenue is divided almost equally between sales of software licenses and services and maintenance.
Attunity's GAAP net loss in the first nine months of the year was $5.1 million, 51.3% less than in its loss in the corresponding period in 2016. Its non-GAAP net loss (excluding various accounting items) was $1.6 million, including a $752,000 third-quarter net profit ($0.04 per share).
Several months ago, Attunity reported an OEM agreement with an unnamed company, which will use Attunity's technology for data migration, analytics, data Lake, and big data initiatives.
Published by Globes [online], Israel Business News - www.globes-online.com - on December 6, 2017
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