World News: 21:01 GMT Wednesday 15th May 2019. [Verb Technology Company, Inc. via Globe Newswire via SPi World News]
HOLLYWOOD, Calif. and SALT LAKE CITY, May 15, 2019 (GLOBE NEWSWIRE) -- (NASDAQ: VERB) (“VERB or the “Company”), a leader in business-focused interactive video sales and marketing applications and the pioneer of Augmented Sales Intelligence software, today reported its financial results for the first quarter ended March 31, 2019. The Company is also reporting its unaudited, pro forma, consolidated financial results for the first quarter ended March 31, 2019.
On April 11, 2019, VERB closed the acquisition of Utah-based Sound Concepts, a leading provider of sales and marketing tools and digital technology solutions in the direct sales and affiliate marketing sector. Because the closing of the Sound Concepts acquisition fell on April 11, 2019, subsequent to the end of the quarter, and because a majority of the Company’s revenue in first quarter 2019 is related to business units that were integrated with Sound Concepts, management has opted to provide the additional financial information in this release and in a separate Form 8-K/A which the Company will file in order to provide a more complete picture of the Company’s combined financial performance during the quarter ended March 31, 2019. While VERB’s stand-alone financial results can be found in the recently filed Form 10-Q, revenue generated by the combined sales teams from VERB and Sound Concepts, selling services on the combined platform, was only accounted for in Sound Concepts’ unaudited profit and loss statement of operations.
Subsequent to March 31, 2019, the Company closed its previously announced underwritten public offering providing the Company gross proceeds of approximately $20.5 million before deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company.
On April 11, 2019, VERB closed its previously announced acquisition of Sound Concepts for $25.0 million of value, payable through a combination of $15.0 million in cash, and the issuance of an aggregate of 3.2 million restricted shares of VERB common stock, with a fair market value at closing of $10.0 million. The cash payment was paid using a portion of the net proceeds that VERB received in its underwritten public offering.
At the closing of VERB’s underwritten public offering, the Sound Concepts shareholders purchased an aggregate of $4.0 million of the public offering units at the same price and upon the same terms and conditions as all of the other investors who purchased units in the public offering, such that the net cash outlay by VERB in connection with the Sound Concepts acquisition was approximately $11.0 million not $15.0 million.
As of today, VERB has 22,309,788 shares of common stock issued and outstanding, which includes the shares issued to the institutional investors in the underwritten public offering, as well as the shares issued to the former Sound Concepts principals as part of the acquisition consideration.
Of the total number of common shares issued and outstanding, approximately 8.2 million are owned or controlled by insiders, which equals 37%. Of that amount, Rory J. Cutaia, VERB’s CEO, owns approximately 3.3 million shares or 15% of the outstanding shares.
Additionally, VERB’s new institutional investors own 4.7 million shares or 21%. Accordingly, approximately 58% of VERB shares are owned or controlled by insiders, including the former Sound Concepts principals, and new institutional investors.
“2019 has thus far been the most transformative period in our Company’s history, during which we successfully completed a $20.5 million underwritten public offering with participation from over 40 institutional investors, closed the acquisition of Sound Concepts, and completed our NASDAQ listing,” stated Rory J. Cutaia, VERB CEO. “And now we are pleased to report consolidated revenue growth for the first quarter 2019 of 44.5% over first quarter 2018. But I’m most proud of our 40% growth of digital revenue over Q4 2018, because this represents the results of our respective teams’ work to combine our platform with that of Sound Concepts while integrating the tech, sales, and marketing teams who continued to drive sales while we simultaneously managed a lengthy, all-consuming public offering road show and NASDAQ listing. The synergies, cross-client marketing opportunities and growth we expect our newly consolidated Company to achieve is only beginning. Today, VERB has emerged as a much larger company with over 100 employees, a stronger balance sheet, year-over-year and quarter-over-quarter revenue growth, and after only one quarter, an annual revenue run rate of over $16 million.”
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Globe Newswire: 21:01 GMT Wednesday 15th May 2019
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