BOULDER, Colo. - Gaia, Inc. (NASDAQ: NASDAQ:GAIA), known for its conscious media and community offerings, has announced the pricing of its public offering of 1.6 million shares of Class A common stock at $5.00 each. The company, currently trading at $5.68 with a market capitalization of $133 million, anticipates raising around $8 million in gross proceeds before accounting for underwriting discounts, commissions, and other estimated expenses. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value metrics, with impressive gross profit margins of 85%.
The underwriters have been given a 45-day option to buy up to an additional 240,000 shares. Gaia expects the offering to close on February 7, 2025, subject to customary market and other conditions. The net proceeds are intended for the enhancement of the company's AI capabilities, development of the Gaia Community project, and for general corporate purposes. InvestingPro data shows the company operates with a moderate level of debt and has achieved strong revenue growth of 9.3% over the last twelve months. For deeper insights into Gaia's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Roth Capital Partners (WA:CPAP) and Lake Street Capital Markets are the joint book-running managers for the offering. The shares are being offered pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission (SEC). Investors can access the final prospectus supplement and accompanying prospectus from Roth Capital Partners or the SEC's website once available.
This press release comes with the standard disclaimer that it does not constitute an offer to sell or a solicitation of an offer to buy the shares of Class A common stock, nor shall there be any sale of these shares in any state or jurisdiction where such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Gaia operates as a global video streaming service and community that produces and curates content in several languages, offering a library of over 10,000 titles, the majority of which are exclusive to Gaia. The company's content is available on various platforms, including Apple (NASDAQ:AAPL) TV, iOS, Android, Roku (NASDAQ:ROKU), and others. The company has demonstrated strong market performance with a remarkable 92.5% return over the past year, though InvestingPro analysis indicates that analysts do not anticipate profitability this year. InvestingPro subscribers have access to 8 additional key insights about Gaia's financial health and market position.
The company's press release includes forward-looking statements, which involve inherent risks and uncertainties that could cause actual results to differ materially from those anticipated. These statements are based on expectations as of the date of this press release, and Gaia undertakes no obligation to update any forward-looking information. The information provided is based on a press release statement from Gaia, Inc.
In other recent news, Gaia, Inc. has announced plans for an underwritten public offering of its Class A common stock, with the intent to utilize the net proceeds for enhancing its AI capabilities and furthering the Gaia Community project. The completion and terms of the offering are contingent on market conditions, with no guarantees provided. Roth Capital Partners and Lake Street Capital Markets are serving as joint book-running managers for the offering.
In addition, the company has already filed a relevant shelf registration statement with the Securities and Exchange Commission (SEC), which is currently effective. Potential investors may access the preliminary prospectus supplement and accompanying prospectus, once filed with the SEC, directly from Roth Capital Partners or through the SEC's website.
These developments follow Gaia's commitment to providing a streaming service with an extensive content library of over 10,000 titles, accessible across multiple devices and platforms. However, the company's forward-looking statements acknowledge the presence of various risks and uncertainties that could impact actual results, including elements such as member engagement, competition, economic conditions, and regulatory changes. This information does not constitute an offer to sell or a solicitation of an offer to buy any of Gaia's Class A common stock.
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