Phunware Inc (NASDAQ:PHUN) has arranged with Canaccord Genuity (TSX:CF, LSE:CF) and other agents to sell shares of its common stock, potentially raising up to $120 million in gross proceeds.
The company plans to use this capital to further its goals of expanding its technology offerings, reaching more customers, and monetizing its intellectual property rights.
This move allows Phunware to access additional funds without adding extra burden to its existing financial arrangements, as it replaces a previous sales distribution agreement.
Mike Snavely, CEO of Phunware, clarified that the company is not adding incremental overhang to its original $200 million universal shelf. Instead, they are terminating their prior sales distribution agreement and adding Canaccord Genuity (TSX:CF, LSE:CF), Roth MKM, and Benchmark Company as additional investment banks to the upgraded program.
“We now have a total of three new investment banks as part of this revitalized ATM strategy, providing us with additional flexibility,” Snavely said in a statement.
Phunware aims to achieve connectivity and monetization through the widespread adoption of its technologies. With the activation of Phunware 3.0, the company plans to expand its software products and services audience, utilize and monetize its patents and intellectual property rights, and update its digital asset ecosystem for both existing holders and new market participants.