Phunware Inc (NASDAQ:PHUN) announced it has inked a purchase agreement for a committed equity facility worth up to $30 million with Lincoln Park Capital Fund LLC, a notable Chicago-based institutional investor.
Phunware, known for its fully integrated enterprise cloud platform for mobile, is on a mission to empower brands to engage, manage, and monetize audiences across the globe.
The strategic financing deal comes as the company seeks to expand its industry-leading platform while safeguarding shareholder value.
Russ Buyse, Phunware's CEO, expressed enthusiasm about the prospects this agreement opens up.
"We are excited about the future of the company, and this financing agreement provides us the flexibility to further commercialize our industry-leading platform, while giving us the best chance to limit dilution before realizing important strategic milestones that we believe will maximize shareholder value,” the CEO said in a statement.
Under the terms of the purchase agreement, Phunware gains the right to sell up to $30 million of its common stock to LPC over a 24-month period. Importantly, the company retains full control over the timing and quantity of these sales, with no price limits imposed on LPC’s purchases. Moreover, Phunware can terminate the agreement at its sole discretion, without incurring additional costs or penalties.
Troy Reisner, Phunware’s Chief Financial Officer, emphasized the importance of this deal for the company's long-term growth strategy.
"This agreement allows us to be opportunistic with our capital strategy, and our shelf registration statement provides the potential for additional financing alternatives as we consider what’s best for shareholders. Given the ongoing market uncertainty, we believe this kind of optionality is critical and we are excited to enter into this agreement with Lincoln Park Capital as part of Phunware’s long-term growth strategy.”