Trust Stamp forced to sell shares again; cuts value of a previous share sale
Six months after reporting a fiscal 2022 jump in revenue and losses, digital identity services firm Trust Stamp is seeking new cash through a pair of stock offerings.
The two stock transactions agreed to this week by Trust Stamp are designed to raise about $2.9 million before fees and expenses.
First, the United States-based company has signed a contract to sell 1.3 million shares of common stock (or prefunded warrants) to an unnamed institutional investor. It will be a registered direct sale priced at the market, which means the price will be whatever the prevailing ask price is when the purchase is processed.
At the same time, Trust Stamp has agreed to issue and sell an aggregate of 1.3 million shares – precisely the same amount as the previous deal. Shares with warrants (or prefunded warrant) are $2.30 each.
The warrants will be exercisable upon purchase and will expire five years after the stock is issued. The offering is to close imminently.
A previous contract for warrants agreed to with an institutional investor last fall will bring in a quarter of the original sum.
The deal, with an unnamed investor, was signed September 14 for up to an aggregate of 390,000 shares of common stock with an exercise price of $8.85 per share, adjusted. The exercise price has been changed, according to the company, to $2.30.
No reason for the change has been announced.
Trust Stamp also announced in September that it was selling common shares to wealth management firm Maxim Group in a private placement valued at $1.5 million.
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