By Chris Wack

Netcapital shares were 34% lower, at $5.54, in premarket trading on Thursday after the company priced the sale of 714,000 shares at $7 a share in a registered direct offering.

In a concurrent private placement, the financial technology company said it will issue unregistered short-term warrants to buy up to 714,000 shares at an exercise price of $6.88 a share that will be immediately exercisable upon issuance.

The closing of the offering is expected to occur on or about Monday.

The proceeds to the company from the offering are expected to be $5 million, before deducting placement agent fees and other offering expenses payable by the company. The potential additional gross proceeds to the company from the unregistered short-term warrants, if fully-exercised on a cash basis, will be $4.9 million.

Netcapital said it intends to use the proceeds from the offering for the repayment of certain outstanding promissory notes and for general working capital purposes.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

July 03, 2025 08:25 ET (12:25 GMT)

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