Neighborhood Intelligence (NXH) said Monday it has agreed to sell nearly 16.5 million shares at $2.76 per share, or pre-funded warrant in lieu, in a registered direct offering.

The company, previously known as Bed Bath & Beyond, said that in addition it will issue warrants to buy up to about 16.1 million shares. Gross proceeds from the offering are expected to be about $45.5 million, and the potential additional gross proceeds from the warrants, if fully exercised, will be about $56.25 million, Neighborhood Intelligence said.

Proceeds from the offering will be used to boost merger synergies and build inventory, the company said, adding any remaining proceeds will be for working capital and general corporate purposes. The offering is expected to close on or about Tuesday, the company said.

The company said it plans to decrease its at-the-market equity offering facility to about $75 million from $200 million.

Neighborhood Intelligence also said it is "seeing encouraging revenue momentum across its core business" and gross margin is expected to be over 30%.

The company's shares were down nearly 20% in early trading.

Price: 2.22, Change: -0.55, Percent Change: -19.75