ARI Network Services, Inc. announces pricing of underwritten offering of common stock
MILWAUKEE – ARI Network Services, Inc. (ARI) (Nasdaq:ARIS) announced today that it has priced an underwritten offering of 1,530,435 shares of its common stock at a price of $3.00 per share. In addition, ARI has granted the underwriter a 30-day option to purchase up to 229,565 additional shares of common stock to cover over-allotments, if any. The offering is expected to close on or about May 12, 2015, subject to satisfaction of customary closing conditions.
The total gross proceeds of the offering are expected to be approximately $5.3 million. After deducting the underwriter’s discount and other estimated expenses payable by ARI, the net proceeds to the company are expected to be approximately $4.7 million. These amounts assume full exercise of the underwriter’s over-allotment option. ARI intends to use the net proceeds from the offering to invest in or to acquire, from time to time, businesses that align with ARI’s core acquisition strategy, to repay the outstanding balance of $1,750,000 on its line of credit which was incurred in connection with its recent acquisition of the assets of TASCO Corporation, thus making it fully available for additional transaction and for general corporate purposes.
Craig-Hallum Capital Group LLC acted as sole underwriter for the offering.
The shares are being offered pursuant to an effective shelf registration statement on Form S-3 that was previously filed with the Securities and Exchange Commission (SEC). The securities may be offered only by means of a prospectus. The prospectus supplement related to the offering has been filed with the SEC and is available on the SEC’s website located at www.sec.gov and may also be obtained from Craig-Hallum Capital Group, 222 South Ninth Street, Suite 350, Minneapolis, MN 55402, telephone 612-334-6300, email: prospectus@chlm.com.
