Accelerize Inc. (OTCBB:ACLZ) Staggers After New Public Offering

After Accelerize Inc. (OTCBB:ACLZ) put up a press release on Friday morning and announced a new public offering of its common stock, as well as a private placement of warrants, the company’s share price took a considerable nose dive. By the closing bell ACLZ was 36% down, on its heaviest daily volume for the past 52 weeks.

The company revealed a share purchase agreement with “certain purchasers” for the issuance of 2.14 million new ACLZ shares, priced at $1.00. There was also a warrant purchase agreement, which gave the purchasers the right to purchase up to 1.28 million warrants priced at $0.00001 and having an exercise price of $1.32 – the closing price of the company’s stock on the day preceding the agreements.

While the warrants were priced at the same price ACLZ was trading, however thinly, on the open market, the majority of shares to be sold under the share purchase agreement were priced significantly lower. This could explain why literally minutes after the press release for the deal went online, the price started sliding.

ACLZ had the following to show on its books as of its last reported quarter ended June 2015:

• $403 thousand in cash
• $1.7 million in current liabilities
• $5.46 million in quarterly revenues
• $1.75 million in quarterly net loss

Unlike many OTC companies, ACLZ is not going crazy with issuing new shares. The Stockholders’ Equity chapter of the report shows a few issuances of small amounts of shares, from the exercise of warrants and options. The company had 62.9 million outstanding common shares as of August 11. The 2.14 million new ones at $1.00 apiece do not represent significant percentile dilution but they are the only obvious trigger behind Friday’s drop.