Veritone Inc (NASDAQ: VERI) rose Monday after receiving an acquisition offer from Apis Capital Management for $10.26 per share in cash.
As a result of careful consideration of the opportunity, Apis has increased its initial offer and has communicated this offer in the Letter to the Board attached below. This offer represents a 93% premium over the closing price of Veritone Common Stock on December 4, the date of Apis's initial private written proposal to Veritone, and an 82% premium over the closing price on December 7, the last trading day prior to this announcement, with a total equity value of approximately $198 million.
Apis Managing Partner, Dr. Edgar Radjabli said, "This compelling transaction would deliver immediate liquidity to Veritone stockholders, at a premium to Veritone's prospects as a stand alone company. Veritone shareholders have seen the management of the company unable to deliver value since its IPO, nor has management been able to provide a compelling vision for a turnaround in the company's business, and we believe our proposal represents the best possible outcome."
Dajjabli also said, “we believe that executing the proposed transaction in a timely manner would be beneficial to Veritone stockholders. We believe that the proposed transaction represents a compelling opportunity for Veritone stockholders to monetize their investment in Veritone at a substantial premium to Veritone's current share price.”
Share prices for Veritone rocketed $1.23, or 21.3%, to $6.83
