Netcapital Inc. (Nasdaq: NCPL), a platform providing online capital formation, announced a significant step in strengthening its financial position through a registered direct offering of up to $5.9 million, priced at the market under Nasdaq rules.
Headquartered in Boston, Massachusetts, Netcapital operates a technology platform that supports private companies to raise capital online from both accredited and non-accredited investors.
Through its wholly-owned subsidiary, Netcapital Funding Portal, Inc., the company runs an online portal that facilitates investment opportunities issued under Reg CF.
Additionally, Netcapital Advisors, the company’s consulting arm, provides strategic advice, technology consulting, and online marketing services to support fundraising campaigns, including incubation of technology startups, investor introductions, and crafting compelling pitch decks.
The registered direct offering involves the sale of 69,117,647 shares of common stock (or pre-funded warrants in lieu thereof) at a purchase price of $0.085 per share.
Concurrently, Netcapital will issue unregistered warrants to purchase up to 69,117,647 shares of common stock at an exercise price of $0.085 per share, exercisable immediately and valid for five years.
The offering, expected to close on or about July 18, 2025, subject to customary conditions, is projected to generate gross proceeds of approximately $5.9 million before deducting placement agent fees and other expenses.
H.C. Wainwright & Co. is acting as the exclusive placement agent for this offering. Netcapital intends to allocate the net proceeds primarily for general corporate purposes, including working capital, capital expenditures, and general and administrative expenses.
This infusion of capital is poised to enhance the company’s ability to scale its platform, support more entrepreneurs, and broaden access to private equity investment opportunities for a diverse investor base.
The offering follows a previous announcement of a $9.9 million strategic offering.
Netcapital is a microcap with a current valuation of around $6.8 million. Its shares currently trade at around .$3.20 each and a 52-week high of $11.89.