- Thumzup Media Corporation (NASDAQ: TZUP) successfully raises $6.04 million in net proceeds through a registered direct offering.
- The offering involved 108,333 shares of Series C Convertible Preferred Stock, convertible into 1,083,333 shares of common stock.
- Proceeds will be used for general corporate purposes and exploring cryptocurrency opportunities.
Thumzup Media Corporation (TZUP, Financial) has announced the successful closure of a $6.5 million registered direct offering of Series C Convertible Preferred Stock. The shares were priced at $60.00 each, which equates to $6.00 per common share. After accounting for placement fees and other expenses, the company raised approximately $6.04 million in net proceeds.
The offering included 108,333 shares of Series C stock, which can be converted into 1,083,333 shares of common stock at a 10:1 conversion ratio. This structure offers investors flexibility with conversion limitations of 4.99% or 9.99% beneficial ownership, chosen by the holder, to prevent significant immediate dilution.
Thumzup plans to use the proceeds to bolster its financial position, specifically for general corporate operations and exploring cryptocurrency accumulation. The company, which describes itself as a "digital asset accumulator and advertising industry disruptor," indicates that this capital will support both its cryptocurrency and core advertising technology business endeavors.
Dominari Securities LLC acted as the sole placement agent for this SEC-registered offering, highlighting a targeted approach towards institutional or accredited investors instead of a broader public offering.
This funding round provides Thumzup Media with additional capital to pursue its strategic direction, particularly noteworthy amid ongoing regulatory scrutiny in the digital assets sector.
