Strengthens Balance Sheet through Entry into $4 Million Securities Purchase Agreement
New York, New York, 08:30 EST Jan 05, 2017 (NetworkNewsWire) – Early Wednesday, Social Reality, Inc. (
NASDAQ:SRAX), an Internet advertising and platform technology company focused on the development and commercialization of tools to automate the digital advertising market, announced its entry into a securities purchase agreement that’s expected to generate gross proceeds of $4 million. These proceeds, derived from a collection of fundamental institutional investors, will be used to satisfy the company’s outstanding notes stemming from its financing agreement with Victory Park Management, LLC, as well as its senior secured debt. The offering was scheduled to close on or about January 4, 2017, subject to customary closing conditions.
“This capital infusion is a positive step and will help us progress to the next phase of our growth,” Christopher Miglino, chief executive officer of Social Reality, stated in Wednesday morning’s update. “We made considerable efforts in 2016 to extinguish our debt and deleverage our balance sheet. We are excited to progress to the next level with our business and believe this will position us to better serve our customers and develop the most effective platform offerings for their marketing needs.”
Social Reality’s efforts to strengthen its balance sheet could position the company for considerable financial growth in 2017. Last November, Social Reality announced its third quarter 2016 financial results, which included a 29 percent year-over-year increase in revenues. Shortly after the conclusion of this fiscal quarter on September 30, 2016, the company completed its uplisting to the Nasdaq Capital Market and bolstered its management team through the addition of financial and broadcasting veteran J.P. Hannan as its new chief financial officer.
With its Social Reality Ad Exchange (SRAX) real-time bidding management platform, Social Reality connects 29,000 URLs and 25 billion impressions to global demand partners every month. This market share has the company strategically positioned to capitalize on forecast growth in the programmatic advertising space moving forward. According to data from eMarketer (http://nnw.fm/B8F7o), programmatic digital display ad spending in the United States is on course to top $27 billion in 2017, marking an increase of nearly 75 percent over 2015 totals.
In large part, this market performance will likely be attributable to growth in mobile, with mobile video programmatic spending on course to exceed desktop spending for the first time in 2017. Social Reality is already taking aim at this growing opportunity through the recent release of the SRAX APP. This new platform allows publishers and content owners to launch native mobile applications directly through the SRAX platform, providing the means to make mobile-friendly content while saving on the lofty development costs associated with building an app from scratch.
For more information, visit www.SocialReality.com
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