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Cybersecurity services provider Castellum (ONOV) (NYSEMKT:CTM) has downsized a proposed uplisting and public offering to $4M from $13M.
Castellum said in a filing that it is now looking at offering 1.4M shares, with selling shareholders offering an additional 150K shares, priced between $2 and $3 per share. The deal would raise around $4M if priced at the midpoint at $2.50 per share, with the company seeing gross proceeds of around $3.5M.
Underwriters would be granted a 45-day option to buy up to 225K additional shares. EF Hutton is serving as lead underwriters. Castellum has been approved to list its shares on NYSE American under the symbol CTM.
The deal is significantly lower than the one proposed in a Sept. 30 filing, which sought to raise a total of $13M. That deal entailed the company offering 2.7M shares priced between $3 and $5 per share, with selling shareholders offering 520K shares.
Based in Maryland, Castellum is a provider of cybersecurity and IT software and services, primarily for government agencies. The company posted a 2021 net loss of $8M on revenue of $25M.
Castellum shares are currently traded OTC under the symbol ONOV. The company intends to conduct a 1-for-20 reverse stock split ahead of the uplisting, which had been expected to occur on Oct. 7.
For more on Castellum, check out SA contributor Donovan Jones’s “Castellum Proposes Terms for $13M Uplisting.”
Image and article originally from seekingalpha.com. Read the original article here.