Veritone's shares pulled back sharply after the artificial intelligence software company signed an agreement for a $15 million equity raising.

In premarket trading, the shares were 19% lower at 96 cents. As of Wednesday's close, the stock had already fallen 74% so far this year.

Veritone said Thursday it entered a definitive agreement for the sale of 20 million of its shares in a registered direct offering.

The proceeds will be used to help repay or restructure a portion of Veritone's convertible debt, the company said.

The offering is expected to close on or about Friday.