Newsmax Inc. says it has closed its funding round involving shares of preferred stock. The company said that it had exceeded its original target of $150 million, with gross proceeds hitting $225 million.
Newsmax is a news startup that provides a conservative alternative to mainstream media, which is dominated by left-wing ideology. Like many early stage firms, Newsmax continues to lose money and needs equity capital to grow and become profitable.
CI recently reported that Newsmax was pursuing a Reg D funding round and a possible Reg A offering. While Reg D is available only to Accredited Investors, Reg A offerings may solicit investments from anyone. Under Reg A, an issuer may choose to trade shares on an exchange immediately after a funding round. This has led the exemption to be described as a “mini-IPO” type exemption with scaled disclosures.
Newsmax said it would trade its shares later this year under the ticker symbol “NMAX,” having already applied to the NYSE.
Newsmax disclosed that over 8000 Accredited Investors participated in the Reg D offering.
The company did not comment on the Reg A offering, which has yet to be qualified by the SEC. If approved, Newsmax plans to sell up to 7,500,000 shares of Class B common stock at $10 a share.
Christopher Ruddy, CEO of Newsmax, issued a statement in a company release:
“This achievement reflects the strong results Newsmax has demonstrated and testifies to the trust and support the Company maintains with investors, viewers and friends. We’d also like to thank Digital Offering LLC, for their expertise, hard work and their positive commitment to supporting us throughout this process. We are excited to be one step closer to our upcoming IPO which will provide us a tremendous opportunity for growth. A public offering will allow tens of thousands of Americans to directly partner with us and join our news revolution. We look forward to delivering long-term value to all of our shareholders.”
Digital Offering was the placement agent for the Private Placement, and EquiDeFi acted as the platform service provider.
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