Paltalk, Inc. (PALT), a company that operates as a communications software provider together with its subsidiaries, has steadily increased 5.60% in premarket trading session and was trading at $7.17 when last checked. The increase has come after the company closed the public offering. On Tuesday, PALT closed the day at $6.79 after declining 3.55% during regular trading hours.
PALT closed the underwritten public offering
In the late hours of Tuesday, PALT announced the closure of its previously announced underwritten public offering of 1,350,000 shares of its common stock. The shares had a public offering price of $7.50 per share. The company also granted a 45-day option to Maxim Group LLC to purchase an additional 202,500 shares of common stock at a public offering price minus underwriting discounts of which Maxim Group has fully exercised its options to purchase such 202,500 shares of common stock. The company estimated that the gross proceeds from the offering to be approximately $11.64 million, before deducting underwriting discounts, commissions and other offering expenses, which include the over-allotment. Maxim Group LLC was serving as the sole book-running manager for the offering.
Q2 2021 financial results
On 10th August, PALT reported the financial results for the second quarter of the fiscal year 2021 which ended on 30th June 2021. The company had cash and cash equivalents of $6.50 million on 30th June. The total assets in possession of the company were $14.72 million while total liabilities were $3.31 million. The total revenue generated by the company for the period was$3.41 million against $3.38 million for the same period of 2020. The cost of revenue for the period was $0.63 million against $0.68 million for the same period of 2020. The total costs and expenses for the period were $2.83 million against $2.84 million for the same period of 2020. The total income from the operations stood at $0.57 million against $0.53 million for the same period of 2020. The net income generated by the company during the period was $0.82 million ($0.12 per basic and diluted share) against $0.53 million ($0.08 per basic and diluted share) for the same period of 2020.
What’s ahead for PALT?
A closer look at statistics reveals that during the last three months, PALT has surged by more than 100%, primarily due to strong quarterly performance. The analysts believe that the business expansion plans by the company have greatly aided in this regard as well. So, potential investors should keep a close eye on PALT stock.
