FunctionX Inc (NASDAQ:FNCX) investors are having a rough morning after the Wetpaint’s parent company announced the pricing of an underwritten public offering of 4,571,428 shares of its common stock at a price to the public of $1.05 per share, 23% discount to yesterday’s closing price.
The gross proceeds to Function(x) Inc. from this offering are expected to be approximately $4,800,000 before deducting underwriting discounts and commissions and other estimated offering expenses. Function(x) Inc. has granted the underwriters a 45-day option to purchase up to an additional 685,714 shares of common stock to cover over-allotments, if any. The offering is expected to close on March 1, 2017, subject to customary closing conditions.
The public offering would dilute shareholders’ investments, and as such FunctionX shares are currently dropping nearly 20% to $1.03 in early trading Friday. FNCX has a 1-year high of $8.00 and a 1-year low of $1.22. The stock’s 50-day moving average is $2.16 and its 200-day moving average is $2.71.
Function(x), Inc. provides an online destination for entertainment news for millennial women, covering the latest in television, music, and pop culture. It operates its business through three segments: Wetpaint, Choose Digital and DDGG. The Wetpaint segment is a media channel reporting news stories and publishes information content covering top television shows, music, celebrities, entertainment news and fashion. The Choose Digital segment provides a business-to-business platform for delivering digital content, including music, movies, TV shows, eBooks and audio books. The DDGG segment offers a business-to-business operator of daily fantasy sports.