BURLINGTON, Mass., March 13, 2019 (GLOBE NEWSWIRE) -- Bridgeline Digital, Inc. (NASDAQ: BLIN), a provider in cloud-based Web Content Management, eCommerce and Marketing Automation software, announced today that it has closed a private placement (Private Placement) resulting in gross proceeds to the Company of $10,227,500, before deducting placement agent fees and other offering expenses payable by the Company.
The Private Placement involves the offer and sale of securities consisting of an aggregate of (i) 10,227.5 shares of the Company’s newly-created Series C Convertible Preferred Stock, with a stated value of $1,000 per share and convertible at $0.18 into an aggregate of 56,819,473 shares of Company common stock; (ii) 5.5 year Series A Warrants to purchase 56,819,473 shares of Company common stock, subject to adjustment; 24 month Series B Warrants to purchase 56,819,473 shares of Company common stock, subject to adjustment; and 5.5 year Series C Warrants, which may become exercisable following the registration of the securities issued in the Private Placement. The Series A Warrants and Series B Warrants have an initial exercise price of $0.18 per share. The shares of Series C Convertible Preferred Stock, Series A Warrants, Series B Warrants and Series C Warrants were offered and sold as units, with each unit being offered for $1,000.
The Company expects to use $4.5 million of the net proceeds to complete its previously announced agreement to purchase certain assets from Stantive Technologies, Inc., to retire all remaining debt on its balance sheet of approximately $2.7 million, and the remainder is reserved for general working capital.
Further details regarding the Private Placement will be described in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission (SEC) by the Company and the information herein is qualified in its entirety by the Current Report on Form 8-K to be filed with respect to the Private Placement.
“This financing further positions Bridgeline as a leader in Marketing Technology by bringing the Stantive assets, including OrchestraCMS, into the Bridgeline product suite. Bridgeline will continue to provide outstanding support for OrchestraCMS and invest in the software’s growth, while focusing on the integration of the recently acquired Celebros search technology,” said Bridgeline’s President and Chief Executive Officer Ari Kahn. “This year, Bridgeline has already doubled its customer base and, with the acquisition of Stantive, we are able to introduce new technologies to this expanded audience to fuel growth and drive innovation, including artificial intelligence capabilities acquired as a result of the Celebros acquisition.”
ThinkEquity, a division of Fordham Financial Management, Inc., and Taglich Brothers, Inc. acted as co-placement agents for the Private Placement.
About Bridgeline Digital
Bridgeline Digital, The Digital Engagement Company™, helps customers maximize the performance of their complete digital experience – from websites and intranets to online stores and marketing campaigns. Bridgeline’s Unbound platform deeply integrates Web Content Management, eCommerce, eMarketing, Social Media management, and Web Analytics to ensure marketers deliver digital experiences that attract, engage and convert their customers across all channels. Headquartered in Burlington, Mass., Bridgeline has thousands of quality customers that range from small- and medium-sized organizations to Fortune 1000 companies. To learn more, please visit www.bridgeline.com or call (800) 603-9936.
