$5 Million Cash Injection: Banzai's Bold Move to Dominate Marketing Technology

SEATTLE, Sept. 24, 2024 (GLOBE NEWSWIRE) -- Banzai International, Inc. (NASDAQ:BNZI) has just made a major announcement that is set to send shockwaves through the marketing technology industry. The leading marketing technology company has entered into definitive agreements for a private placement priced at-the-market under Nasdaq rules, securing a substantial investment of $5 million.

This strategic move is expected to have a significant impact on the company's growth trajectory, as it gears up to take on the competition and assert its dominance in the marketing technology space. The private placement, which is priced at $4.25 per share, will see the issuance and sale of an aggregate of 1,176,471 shares of Class A common stock (or pre-funded warrant in lieu thereof), accompanied by Series A warrants to purchase up to 1,176,471 shares of Class A common stock and short-term Series B warrants to purchase up to 1,176,471 shares of Class A common stock.

The Series A and short-term Series B warrants will have an exercise price of $4.00 per share and will be exercisable immediately upon issuance. The Series A warrants will expire five years from the issuance date, while the short-term Series B warrants will expire 18 months from the issuance date. This clever structuring of the warrants allows investors to benefit from the potential upside in the company's stock price, while also providing a level of protection against any potential downside.

The closing of the offering is expected to occur on or about September 26, 2024, subject to the satisfaction of customary closing conditions. H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering, bringing its expertise and vast network to the table to ensure a successful transaction.

The gross proceeds from the offering are expected to be approximately $5 million, prior to deducting placement agent's fees and other offering expenses payable by the Company. This influx of capital will provide a significant boost to the company's balance sheet, enabling it to pay off its outstanding credit facility with Yorkville Advisors in full. The remaining funds will be allocated towards working capital and other general corporate purposes, providing the company with the flexibility to pursue new opportunities and drive growth.

This latest development is a testament to Banzai's commitment to innovation and its determination to stay ahead of the curve in the rapidly evolving marketing technology landscape. With this $5 million investment, the company is well-positioned to accelerate its growth plans and make a meaningful impact in the industry.