has closed the previously announced sale of 1,541,624 shares of common stock at $9.73 per share for gross proceeds to the company of $15.0 million.
KIT Media, the investment vehicle controlled by KIT digital chairman and CEO, Kaleil Isaza Tuzman, invested $1.75 milllion of the total $15 million raised.
The net proceeds received by the company are expected to be approximately $14.0 million, after deducting the proceeds from underwriting discounts, commissions, legal fees, and certain deal-related expenses payable by the company.
As previously announced, KIT digital has granted a 30-day option to the underwriter to purchase up to an additional 231,244 shares to cover over-allotments, the results of which will be reported upon closing of the over-allotment.
The company intends to use the net proceeds from the sale of the shares in the offering to repurchase outstanding warrants issued in prior private placement financings from certain warrant holders and, if there are residual proceeds, for acquisitions, working capital and general corporate purposes.