Cloud Services Provider Fusion (NasdaqCM: FSNN) Prices Public Offering of $36,000,000
Fusion (FSNN), Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, announced the pricing of its previously announced underwritten public offering of 11,250,000 shares of its common stock at a public offering price of $3.20 per share for gross proceeds of $36,000,000. The net proceeds, after underwriting discounts and commissions, but before estimated expenses of the offering payable by Fusion, are expected to be $33,660,000. As part of the offering, Fusion granted the underwriters a 45-day option to purchase up to an additional 1,687,500 shares of its common stock on the same terms and conditions to cover over-allotments, if any. All shares of common stock to be sold in the offering will be offered by Fusion. The offering is expected to close on or about February 5, 2018, subject to the satisfaction of customary closing conditions.
Craig-Hallum Capital Group LLC is acting as the sole book-running manager and B. Riley FBR, Inc. is acting as a co-manager for the offering.
The offering is being made pursuant to a shelf registration statement on Form S-3 (File No. 333-222127) that was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on January 17, 2018. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the offering were filed with the SEC on January 29, 2018 and may be obtained by visiting the SEC’s website at www.sec.gov or by contacting Craig-Hallum Capital Group LLC, 222 South Ninth Street, Suite 350, Minneapolis, MN 55402, by telephone at 612-334-6300 or by email at email@example.com; or B. Riley FBR, Inc., 11100 Santa Monica Blvd., Suite 800, Los Angeles, CA 90025, by telephone at 888-295-0155 or by email at firstname.lastname@example.org. The final terms of the proposed offering will be disclosed in a final prospectus supplement to be filed with the SEC.
Matthew Rosen, New York, NY based Cloud Services Provider Fusion’s (NasdaqCM: FSNN) CEO stated with the release of their Q3 results Novemebr 13, 2017, “Fusion continued to deliver solid financial performance during the third quarter of 2017, with nearly 40% growth in Business Services revenue and nearly 150% growth in Adjusted EBITDA, thanks to the contribution from the Apptix acquisition as well as solid sales bookings and installations, customer novations, and continued low churn. These results clearly demonstrate the power of our compelling strategy as the single source for the cloud. Since we announced our definitive agreement to acquire the Cloud and Business Services business of Birch in late August, both companies have been planning for the integration of our people, products, networks, and systems to ensure that the combined company – which will be one of the largest cloud services providers in North America – is positioned to begin realizing the benefits of the combination immediately after closing. We have also made substantial progress on the steps required to complete the transaction, including antitrust filings and filings with the FCC and a number of state regulatory agencies, and we expect to file the preliminary proxy this week. Given the upcoming holiday season, we believe that the process of obtaining regulatory approvals will take the close of the acquisition into the first quarter of 2018.”
Michael Bauer, Fusion’s CFO, stated, “We are very excited to complete the Birch transaction. The combined company is projected to have approximately $575 million in pro forma annual revenue and over $150 million in pro forma annual Adjusted EBITDA, including over $20 million in expected cost synergies.”